The annual house price inflation in the UK reached 4.6 per cent in May 2018, according to latest data from Hometrack. The average price of a home in the UK is estimated at £217,400.
The UK Cities House Price Index (covering 20 important cities) shows that house prices maintained the growth momentum in May 2018. House price growth in London continued to remain in the positive territory registering 0.4 per cent hike. The house prices in London are still the highest at £491,200 when compared to the other 19 cities.
Edinburgh saw the highest price rise at 7.1 per cent annually (house price - £225,300) followed by Manchester – 7 per cent; Bournemouth – 6.6 per cent; Birmingham/Nottingham – 6.5 per cent; Liverpool – 5.9 per cent; Leicester – 5.7 per cent; Cardiff – 5.5 per cent; Portsmouth – 5.4 per cent and Sheffield – 5.2 per cent. However, the house prices in these cities are lesser between 24 per cent to 60 per cent when compared to London house prices.
The size of the price relative between London and other cities reflects variations in the timing and levels of economic growth, incomes, job creation, available supply and the flows of net new investment. Though London saw a marginal price rise in May, it continues to remain the preferred destination of house-buyers in the UK.
The price gap between London and other cities fluctuates over the cycle