Demand is rising outside of the South East, according to the Hometrack House Price Index.
There has been a sharp rise in transaction volumes in cities outside of the South East of England, which may result in significant house price growth according to Hometrack.
The latest Cities House Price Index from Hometrack revealed a 15%-35% increase across 2014 in cities outside of the South East, with Belfast, Leeds, Liverpool and Cardiff leading the way. In contrct, transactions in the higher value cities in the South are below average. And those lower sale volumes are resulting in slower house price growth.
|
City |
Housing turnover in 2014 vs five year average |
Change over 2014 vs 2013 |
|
Belfast |
39.0% |
20.3% |
|
Leeds |
22.9% |
8.4% |
|
Portsmouth |
22.7% |
13.2% |
|
Liverpool |
22.4% |
8.1% |
|
Southampton |
21.8% |
9.1% |
|
Cardiff |
21.3% |
14.0% |
|
Nottingham |
20.9% |
13.8% |
|
Leicester |
20.9% |
18.4% |
|
Manchester |
20.9% |
13.7% |
|
Bournemouth |
19.3% |
9.5% |
|
Sheffield |
18.6% |
8.7% |
|
Bristol |
17.5% |
6.5% |
|
Birmingham |
16.8% |
9.3% |
|
Newcastle |
16.5% |
7.2% |
|
Edinburgh |
15.2% |
5.1% |
|
Glasgow |
12.8% |
3.8% |
|
London |
11.4% |
-0.6% |
|
Cambridge |
4.6% |
-13.4% |
|
Aberdeen |
4.5% |
-6.8% |
|
Oxford |
3.4% |
-1.6% |
Source: Hometrack
Inflation
As a whole, annual house price inflation is continuing to slow, with growth of 10% in the 12 months to February compared to 11.6% six months ago.
According to Hometrack, city house price inflation ranges from 3.7% in Newcastle to 12.9% in London year on year.
Here's how the various cities shape up:
|
City |
Average price |
Relative to recent trough |
Relative to peak (2007) |
% year on year |
Average growth pcm last 3 months |
|
Glasgow |
£110,228 |
8.1% |
-13.4% |
5.6% |
1.1% |
|
Liverpool |
£110,034 |
8.4% |
-14.7% |
5.3% |
1.1% |
|
Oxford |
£364,535 |
48.1% |
24.9% |
11.6% |
1.0% |
|
London |
£412,055 |
57.0% |
32.2% |
12.9% |
0.9% |
|
Leeds |
£143,688 |
11.2% |
-8.0% |
6.9% |
0.8% |
|
Sheffield |
£124,904 |
9.9% |
-5.2% |
6.0% |
0.7% |
|
Cambridge |
£355,740 |
59.0% |
32.1% |
10.8% |
0.7% |
|
Leicester |
£143,312 |
17.6% |
-0.7% |
6.5% |
0.7% |
|
Bristol |
£219,053 |
35.6% |
9.9% |
10.9% |
0.7% |
|
Manchester |
£136,923 |
11.6% |
-6.7% |
6.4% |
0.6% |
|
UK |
£185,114 |
19.7% |
1.5% |
7.5% |
0.5% |
|
Portsmouth |
£193,083 |
25.1% |
6.1% |
8.4% |
0.6% |
|
Cardiff |
£177,796 |
20.5% |
1.4% |
7.9% |
0.5% |
|
Southampton |
£192,149 |
24.6% |
4.5% |
7.6% |
0.3% |
|
Bournemouth |
£239,110 |
24.5% |
2.5% |
5.9% |
0.3% |
|
Newcastle |
£119,968 |
8.4% |
-9.9% |
3.7% |
0.3% |
|
Nottingham |
£125,334 |
15.6% |
-2.9% |
5.3% |
0.0% |
|
Birmingham |
£132,419 |
10.4% |
-6.5% |
4.4% |
0.0% |
|
Belfast |
£112,765 |
11.6% |
-50.0% |
4.6% |
-0.3% |
|
Edinburgh |
£191,531 |
10.5% |
-8.4% |
6.8% |
-0.4% |
|
Aberdeen |
£189,361 |
28.8% |
13.0% |
10.7% |
-0.6% |
Source: Hometrack
[SPOTLIGHT]Mortgage buyer make up
Falling sales coupled with a general slowdown in activity in the run-up to General Election are resulting in lower mortgage approvals for home purchase.
Homeowners using a mortgage to buy a home made up two thirds of sales in 2014. The last third were cash buyers or those borrowing with a buy-to-let mortgage. In other words, groups who are not subject to mortgage affordability tests.
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