Housing prices in Britain’s leading cities increased by 4.9% yoy in September 2017. This represents a growth slowdown of 6% compared to an year earlier. The strongest growth was recorded in Edinburgh – 6.7% yoy for the period. In addition to Edinburgh, the cities of Manchester, Birmingham, Bournemouth and Leicester, report a significant annual growth rate well above the average.
The index shows that price growth in London has stabilized to 2.3% yoy. More than 80% of the regional markets in the capital of the United Kingdom reported a decline in house prices.
The only large UK city, which report annual decline in house prices is Aberdeen, although the pace is slowing down to 1.8% from 10.6% an year earlier
However, in Cambridge, Oxford, London and Cardiff, the annual growth in prices is below inflation.
The analysts predict that housing prices will continue to grow in regional cities where they start from a low base and their affordability is still attractive to buyers. However, economic factors are likely to keep the growth rate around its current levels.
However, even a modest increase in mortgage rates will initially affect moods and levels of market activity. The households are already reacting, and in the second quarter almost 90% of new mortgages have fixed interest rates, according to data.