Nottingham and Leicester are the fastest growing cities at 7.5% and 6.6%, whilst London slips into negative annual growth at -0.1%, although prices are 1.2% higher over the last quarter, according to the latest figures released by the Hometrack UK Cities House Price Index.
Birmingham and Manchester have dropped out of the top three fastest growing cities, although the rate of growth at 5.7% and 6.1% respectively is still above average.
Patchwork of recovery since financial crisis
Ten years on from the financial crisis in 2008, five cities are below or within 5% of the 2008 price level. Four cities demonstrate house price inflation more than 50% higher than in 2008 while the remaining eleven cities have prices that are 11% to 36% higher than a decade ago.
Belfast, Aberdeen and Liverpool have average prices that are still below their 2008 levels, at -28%, -3% and -1% respectively. Two other cities, Glasgow and Newcastle have average prices that are within 5% of where prices were a decade ago.
At the other end of the spectrum, prices in Cambridge are 70% higher than in 2008 followed by London, Oxford and Bristol at 65%, 55% and 53% respectively.
Steve Seal, director of sales and marketing at Bluestone Mortgages, said these results show the vast regional differences in the UK housing market.
He added: “Fundamentally, the only real solution is to increase our housing supply. However, in the meantime, schemes like Help to Buy continue to provide much-needed support for first-time buyers hoping to step onto the property ladder.
“There is, however, another group of borrowers we need to consider; those with irregular incomes or a weak credit history, as these customers are often unable to obtain mainstream financial support. Real life is full of unforeseen bumps and a one-off event shouldn’t have a permanent bearing on someone’s ability to borrow.
“Instead, lenders need to take the time to recognise the underlying circumstances and offer solutions accordingly. Ultimately, this will not only benefit clients from all backgrounds, but will also help to encourage activity in the wider market.”