House price growth is slowing across the board, property data firm Hometrack says, but the average headline figure disguises north/south variations.
In some cities, the brakes have been slammed on hard. Elsewhere, house price inflation still surges ahead.
Last September, annual house price inflation in London was running at 8.9%. This September, it was down to 2.3%.
In Bristol, annual house price inflation stood at 11.8% in September last year, but at 5.1% this September. In Cardiff, annual house price inflation last September of 6.4% was cut to 2.4% this year, and in Oxford, the respective figures were 7.8% down to 2.3%.
In contrast, prices in Edinburgh were up 6.7% annually to £219,500, compared with 3.8% yearly growth registered in September last year.
The Scottish capital is now the fastest growing city in the UK, overtaking Manchester, which registered 6.5% growth year-on-year (compared with 6.6% last year) to £156,800.
Scottish cities fared better than those south of the border with Glasgow seeing annual house price growth improve from 1.8% in September 2016 to 5.3% in September 2017 to £120,300. Aberdeen, which registered a drop in values of 10.6% in September 2016, saw its rate of decline slow to 1.8% annually in September 2017. It remains the only UK city where house prices are dropping.
Cities where house price inflation has ramped up over the year include Sheffield, Liverpool and Newcastle.
Overall the headline rate of annual growth across UK cities is now running at 4.9%, compared with 6% 12 months ago, leaving average prices in the 20 cities covered by Hometrack at £251,600.
Richard Donnell, research and insight director at Hometrack, said: “The rate of growth is expected to moderate around its current level and will be tempered by economic and sentiment factors such as the squeeze on incomes from rising inflation and concerns over the economic outlook. Talk of a possible increase in interest rates and any knock-on effect for mortgages is also likely to further temper demand.
“A modest increase in mortgage rates will primarily impact sentiment and levels of market activity. Mortgage rates remain low by historic standards and for the last three years, all home owners buying with a mortgage have had to prove they can afford a much higher mortgage rate.
“As a result, recent sales levels already reflect the ability of buyers to afford higher borrowing costs which should mean there is capacity for borrowers to absorb increased monthly repayments.”
|City||Current price||%yoy Sep-17||%yoy Sep-16|
|20 city index||£251,600||4.9%||6.0%|