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Bristol best performing city where London facing Brexit ‘headwinds’ – Hometrack

Victoria Hartley
Written By:
Posted:
July 22, 2016
Updated:
July 22, 2016

Bristol was the city with the strongest house price inflation in the UK in June at 14.7%, but slowing inflation in south eastern cities, including London, suggests a market drop off is on the way.

Hometrack data showed UK annual house price inflation hit a plateau in June as growth slowed in many south eastern cities including Cambridge, Southampton and Bournemouth.

In contrast, northern cities like Glasgow, Manchester, Liverpool and Leeds have registered strong property price increases in the last quarter driven by better affordability, lower interest rates, improving local economies and higher rental yields attracting investors.

The time lag on official data is slow to pick up the impact of Brexit, although price growth appears to have held up over the referendum period, said Hometrack.

In contrast, the headwinds facing the London market ahead of the vote have resulted in rising supply and relatively fewer sales pointing to slower house price growth in the months ahead.

London figures suggest new property listing numbers are the highest in the country, although sales have fallen 8% against a 12-month average compared to sales which are up 7% in Manchester.

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Richard Donnell, insight director at Hometrack (pictured), said: “The headwinds that were facing the London market in the lead up to the EU referendum have intensified on the back of the vote to leave and are resulting in slower sales rates. It is still early days, and seasonal factors also need to be considered but the growth in new listings and slower sales points to slower price growth in the months ahead.

“The severity of a slowdown will depend upon the response of consumers and businesses to the uncertainty created by the decision to leave the EU and the impact this has on the economy.”