Cambridge and London city hotspots for house prices
Hometrack index breaks down how house prices have changed in the nation's biggest cities.
Average house prices in Cambridge have jumped by £53,000 over the last 12 months, more than three times the national average.
Along with London, prices in Cambridge have risen faster than in any other major UK city, according to the inaugural UK Cities House Price Index from Hometrack.
The study looks at average house prices at a local level, focusing on 20 cities across the UK. Here’s how those cities measure up.
|
City |
Growth in average price over last 12 months |
% change over last year |
Change from 2007 |
|
London |
£61,000 |
18.1% |
29.2% |
|
Cambridge |
£53,000 |
17.9% |
32.4% |
|
Oxford |
£32,100 |
10.5% |
20.7% |
|
Bristol |
£26,900 |
14.1% |
8.3% |
|
Bournemouth |
£19,600 |
8.7% |
2% |
|
Portsmouth |
£18,400 |
10.4% |
4.7% |
|
Southampton |
£17,100 |
9.9% |
3.6% |
|
Cardiff |
£13,200 |
8% |
-0.6% |
|
Edinburgh |
£10,900 |
6.1% |
-9% |
|
Aberdeen |
£9,500 |
5.3% |
11.5% |
|
Nottingham |
£9,100 |
7.7% |
-3.8% |
|
Leeds |
£8,900 |
6.8% |
-10.2% |
|
Manchester |
£8,900 |
7% |
-8.1% |
|
Belfast |
£8,800 |
8.3% |
-50.7% |
|
Newcastle |
£8,200 |
7% |
-9.2% |
|
Sheffield |
£6,800 |
5.7% |
-5.9% |
|
Birmingham |
£6,700 |
5.3% |
-7.2% |
|
Leicester |
£6,600 |
4.8% |
-3.6% |
|
Liverpool |
£5,500 |
5.3% |
-15% |
|
Glasgow |
£4,600 |
4.3% |
-14.9% |
As you can see, eight cities have now passed their 2007 peak, with Cambridge up by a third. Notably all of them are found in the south of England, except for Aberdeen where house prices have been boosted by a strong oil price.
However a number of cities have seen drastic price falls since then, most notably Belfast where prices have plunged more than 50%.
Other strugglers include Leeds, Liverpool and Glasgow, which have seen double digit falls since the house price peak.
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Things are slowing down
Hometrack argues that pent-up demand has boosted house prices over the past 18 months, but there are signs that weaker demand is slowing the rate of house price growth.
That’s most clearly demonstrated by the majority of cities seeing a slowdown in the rate of house price growth in recent months compared to back in the spring.
Hometrack’s prediction is in line with Halifax, which has suggested that house prices are now stabilising. The Centre for Economic and Business Research has gone one step further, predicting that prices will fall next year.
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More on house prices:
House prices will fall next year
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Comments
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[B]"Hometrack argues that pent-up demand has boosted house prices "[/B] Not this argument again. The other day I was in a local supermarket when I saw the Readybrek had been reduced from ~£2 to £1. I'm quite fond of oats and like oaty cereal but I'm not going to pay ~£2 for a small box. But at £1 I brought 3. I'll also no doubt go back later and buy more. Now what has this got to do with house prices and "pent up demand" I hear you ask? Well with virtually anything demand is linked to price and as the price goes up demand falls. At £0.00 a box I'd have wiped them out. At £2 a box I won't touch it. And it's the same for houses. There is no such thing as "pent up demand" and that phrase is almost solely used by vested interests (e.g. estate agents) and churnalists. After all if houses only cost £1 each how many would you buy?
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http://rt.com/shows/keiser-report/198164-episode-670-max-keiser/ 17:14 Watch and weep.
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24 October 2014