UK cities are recording price rises for the first time in 3 years, according to the latest UK Cities House Price Index from Hometrack. The UK city house price inflation registered in February was +2.8 per cent.
“This is the first time annual price growth has been positive across all 20 cities for 3.5 years (August 2015),” Hometrack said. Regional cities continued to post above average house price growth.
Cities outside southern England have recorded above average price inflation over the last 3 years. This is a result of better affordability and rising employment, which has boosted demand.
Leicester and Manchester have recorded price growth of 17 per cent since the Brexit vote in June 2016, followed by a 16 per cent increase in Birmingham. The latest index finds prices rising by 5 per cent or more in seven cities led by Leicester, Manchester, Glasgow, Belfast, Liverpool, Birmingham and Cardiff.
Incidentally, London house prices, which were under pressure, saw growth rate edged higher to 0.4 per cent. There has been a decline in the number of London postcodes registering price falls since October 2018. This is attributed to the recent 3-year repricing o London homes by some developers in inner London and high-value markets.
Hometrack is of the view that the demand for housing in the UK is holding up. With unemployment at a record low and mortgage rates still averaging 2 per cent, buyers appear to be largely shrugging off Brexit uncertainty until there is a material change in the overall outlook.
Housing transactions and mortgage approvals holding up despite Brexit uncertainty.