House prices in Birmingham rise faster than anywhere in the country

Birmingham is now the number one UK property hotspot, after it was revealed today that property values in the city increased faster than any other in the country.

The average price of a home in Birmingham increased by 8% compared with the corresponding month last year thanks to a sharp rise in transactions, while Manchester and Nottingham saw the second and third highest annual house price growth last month, respectively, as prices rise off strong demand and attractive affordability.

In contrast, Aberdeen has now been registering negative growth for two years, but the 12 month slowdown in London house price growth appears to have ‘bottomed out’ with the annual growth rate rising to at 2.8%, up from 2.3% last month, thanks mainly to lower transaction volumes and an absence of forced sellers

Annual house price growth across the UK’s main cities now stands at 5.3% compared to 7.4% in July 2016, with the average price of a home across the 20 cities monitored by the index now stood at £252,700, which is higher than the UK average of £212,100.

Richard Donnell, research and insight director at Hometrack, said: “There remains a clear divide between the prospects for house price growth in regional cities, where affordability levels are attractive, and the prospects for house price growth in London and other high value cities in southern England.

“We expect house price growth in regional cities to be sustained at current levels for the rest of 2017 whereas London is set for a sustained period of low nominal house price growth and lower sales volumes.”

City

Average price

%yoy Jul-16

%yoy 
Jul-17

Variance

Birmingham

£155,400

6.8%

8.0%

1.2%

Manchester

£157,500

7.3%

7.1%

-0.1%

Nottingham

£148,300

6.4%

6.9%

0.5%

Southampton

£229,000

7.8%

6.5%

-1.4%

Leeds

£162,600

5.7%

6.2%

0.5%

Leicester

£165,100

6.2%

5.8%

-0.4%

Portsmouth

£231,300

9.4%

5.7%

-3.7%

Bournemouth

£280,900

6.8%

5.4%

-1.3%

Edinburgh

£209,400

2.0%

5.4%

3.4%

Cardiff

£198,900

5.4%

5.3%

-0.2%

Glasgow

£119,300

2.2%

5.2%

3.0%

Sheffield

£133,900

2.8%

4.7%

1.9%

Bristol

£268,400

14.3%

3.7%

-10.7%

Belfast

£129,500

4.1%

3.1%

-1.0%

Liverpool

£116,900

4.6%

2.8%

-1.8%

London

£494,300

11.2%

2.8%

-8.4%

Newcastle

£127,200

2.9%

2.8%

-0.1%

Cambridge

£432,400

8.1%

1.9%

-6.2%

Oxford

£418,400

9.5%

1.2%

-8.4%

Aberdeen

£179,700

-9.2%

-3.0%

6.2%

20 city index

£252,700

7.4%

5.3%

-2.1%

UK

£212,100

6.9%

4.8%

-2.1%

Mortgages – Find cheapest rates from 0.98%


Written by: Houseladder