The house prices continue to surge across the UK with February 2018 registering 5.2 per cent growth. The UK city house price inflation during the same time last year was 4 per cent.
According to Hometrack’s latest UK Cities House Price Index, five cities witnessed price growth higher than the national average (5.2 per cent). Edinburgh (8 per cent), Liverpool (7.8 per cent), Leicester (7.7 per cent), Birmingham (7.7 per cent) and Manchester (7.1 per cent) registered 7 per cent+ price inflation in February. In fact, half of the 20 cities covered by the index are registering higher annual growth than a year ago.
Other cities that surpassed the national average price inflation included Leeds (6.9 per cent), Nottingham (6.6 per cent), Sheffield (6 per cent), Cardiff and Portsmouth (5.3 per cent). The house price inflation in London remained stable at 1 per cent in February.
Hometrack data shows that house price growth remains robust in the largest regional cities where similar analysis on rising and falling markets reveals no evidence of localised price falls.
Poor supply of new homes and dwindling housing stock are contributing to house price inflation across the UK, especially in cities where prices are lower than London. Hometrack expects the trend to continue for few more months.
The divergence in house price growth between southern England and regional cities continues with overall HPI at 5.2%.