House price increases slow following mortgage regulation and tax changes
House prices across 20 of the UK’s largest cities have risen by 1.9 per cent in the year to end of August, an index from Zoopla and Hometrack has shown.
Twelve cities have a lower rate of price inflation than a year ago, led by Edinburgh, Bournemouth, Portsmouth and Oxford.
Growth has slowed “as the market adapts to a changing profile of demand, resulting from tax and policy changes and increased mortgage regulation,” Zoopla said.
The index revealed that prices in northern cities including Manchester, Leeds and Sheffield have returned to above their 2007 peaks.
While in London and the South, although prices sit at 56 per cent higher than the 2007 peak, the last four years had seen them “track sideways”.
Leicester saw the fastest price growth at 4.8 per cent in the year. This was the first time since 2012 that the city recording the fastest price growth came in at below 5 per cent.
The lowest growth was in Aberdeen, at minus 4.0 per cent.
Zoopla said that cities’ house prices had developed at different rates owing to local economies, buyer demand, affordability and policy changes and regulation.
Additionally, demand from mortgaged home owners has reduced in high value cities since 2016.
The index measures price inflation in 20 cities across the UK.