You are here: Home - News -

City house price growth slowing

  • 26/05/2017
  • 0
City house price growth slowing
House price growth in UK cities is slowing down, matching the national trend.

According to the Hometrack UK Cities House Price Index, residential property prices rose 5.3% in the year to April.

This is down from 8.7% in the year to April 2016, and largely consistent with the last six months.

Perhaps encouragingly, price growth slowdown is most noticeable in the most unaffordable cities.

London, Cambridge, Oxford and Bristol all saw the rate of growth slow from double to single digits over the last year.

Hometrack suggested this steep deceleration in growth reflected weaker levels of demand from home owners and investors in the face of affordability constraints, tax changes and weaker market sentiment.

Aberdeen saw the biggest house price fall from those cities sampled (down 3.8%) but this was actually a stabilisation from the year to April 2016, when prices fell by almost 10%.


hometrack-cities-260517Manchester and Midlands

Manchester continues to register the fastest growth rate across the country of 8.4%, up from 6.3% a year ago. (Click graph to enlarge.)

It is followed by three midlands cities: Leicester (7.7%), Birmingham (7.7%) and Nottingham (7.2%).

Price growth in London is the slowest for five years at 3.5%, compared to 13.0% in April 2016.

Hometrack added that the current trends were consistent with mortgage demand

According to data from the Council of Mortgage Lenders (CML), only in London were mortgaged homeowner numbers materially lower (down 19%) in the first quarter of 2017.

“Taken together with a 30% decline in buy to let purchasing it is clear that demand for housing in southern England is moderating and impacting price inflation,” Hometrack noted.


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.

Read previous post:
British Specialist Lending Awards gallery: the night in pictures

The first ever British Specialist Lending Awards celebrated the best of the specialist lending sector. Here is the night in...