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It’s grim down south, as property price growth slows

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But house prices in Northern cities are growing steadily as demand and supply both rise
It’s grim down south, as property price growth slows

Average house price growth across southern cities is running at the lowest level recorded since January 2012, according to Zoopla.

The property portal said that house prices grew by just 0.7% in these markets in the 12 months to June 2019, because of weaker demand for housing.

House price growth in southern cities ranged between +2% in Bristol to -0.3% in Cambridge.

Despite house prices continuing to register annual price falls in Cambridge for 10 out of the last 12 months, average property prices in the city are currently the second most expensive of all 20 cities analysed, sitting at £425,800. London continues to be the most expensive city, with prices averaging £484,200.

Richard Donnell, research and insight director at Zoopla, comments: “There is a clear imbalance between supply and demand for housing across southern cities and this explains why house price growth in these cities is at its lowest level since 2012.”

North sees price growth

Northern cities have seen annual average price growth of 3.6%, said Zoopla, where supply and demand are more in balance.

The strongest market conditions in the north of England are in Liverpool, where the amount of new supply coming to the market is in line with the number of sales being agreed, and prices rose by 4.9% over the 12 months to June 2019.

Overall, house price growth in UK Cities slowed to 1.7% over the 12 months to June 2019, ranging from a high of 5.1% in Edinburgh to a low of -3.2% in Aberdeen.

Donnell added: “Robust demand from buyers continues to support house price growth in northern cities and Edinburgh. Average prices in northern cities are registering annual growth of 3.6%. This is a stark comparison to the 0.7% growth in southern cities. We expect regional cities outside the south of England to continue to out-perform, although there are early signs of weaker growth ahead in parts of the midlands as successive years of house prices rising faster than earnings is beginning to weaken demand.”

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