The biggest value growth is in Leicester, where prices have jumped by 7.7% year-on-year, property company Hometrack found.
At the other end of the scale, values fell by 2.8% annually in Aberdeen.
In London house prices dropped by 0.4%, which is a result of “weaker market fundamentals”, with Brexit uncertainty acting as a compounding factor, Hometrack said.
Brexit impact limited so far
However, the impact of the UK’s withdrawal from the European Union (EU) has so far had a limited impact on the market, the firm’s analysis suggested.
The near-term outlook for UK city house prices is down to projections for the economy and mortgage rates, as well as households’ expectations for employment.
If the government gets the proposed withdrawal deal, and transition period, approved by parliament, the outlook for city housing markets in 2019 could mirror 2018, Hometrack predicted.
Richard Donnell, insight director at Hometrack said: “Two and a half years on from the Brexit vote, our analysis reveals a limited direct impact from Brexit uncertainty on the housing market thus far.
“Large regional cities continue to register above average house price inflation with the discount between asking and sales prices narrowing on rising sales volumes.
“In the very near term we expect market trends to continue until the outlook becomes clearer.
“Housing markets in regional cities certainly appear to be in more of a business as usual mode while the London market continues to adjust though modest price falls.
“Our lead housing indicators suggest no imminent deterioration in the outlook for prices or levels of market activity.”