UK city house price growth reached a two-year high of 3.9 per cent in December 2019 backed by strong demand, statistics from Hometrack revealed.
“Coupled with a bounce in demand, which at 26% far exceeds the traditional new year boost, we see green shoots of returning market optimism. At a regional level, affordability of local stock is driving growth forecasts for Northern and Midlands cities, while in the South, the picture is more subdued,” Hometrack said in its UK Cities House Price Index for December 2019.
House price growth across UK cities is supported by a flat to falling house prices in the latter parts of 2018 falling out of the annual growth rate. The second factor is the increased demand and more sales – HMRC data shows sales in December 2019 were 11 per cent higher than in December 2018 and 1 per cent higher over the last quarter of 2019 than the previous year.
Edinburgh registered the highest house price growth of 6.1 per cent, followed by Nottingham (5.2 per cent); Leicester (4.7 per cent); Manchester (4.5 per cent); Liverpool (4.1 per cent); and Birmingham (3.9 per cent). London continued to register a healthy growth rate of 1.9 per cent. Hometrack expects sales volumes to rise faster than prices in London in view of strong demand.
UK city house price inflation is running at +3.9% as the impetus for price growth increases in regional cities with attractive affordability and positive price growth in London (+1.9%) supporting the headline growth rate.