UK Cities House Price Index August 2018 by Hometrack

Key findings:

  • UK city house price inflation running at 3.9% – ranging from +7.5% in Liverpool to -3.9% in Aberdeen.
  • Fastest growing cities are some of the most affordable – 4 cities still yet to reach 2007 levels.
  • Rising house prices mean the income to buy has grown by 18% since 2015 despite lower mortgage rates. The near-term outlook for city house price growth is closely tied to changing affordability.

Liverpool fastest growing city
Liverpool is the fastest growing city where the annual rate of inflation is 7.5% followed by Glasgow (7.2%) and Nottingham (6.9%). These cities are among the most affordable and average prices are only just returning to the levels last seen in 2007

House prices rising faster than earnings in 16 cities
The reality is that house prices continue to rise faster than earnings in 16 cities as buyers continue to bid up the cost of housing on the back of low mortgage rates and high levels of employment.

Higher prices impact affordability and spending power
Higher house prices, combined with drift upwards in mortgage rates, means affordability pressures are likely to continue to increase steadily in the next 12-24 months and act to moderate the rate of growth.

House price growth