Brexit and affordability issues may have helped cool the housing market in London and the South East, but some of the U.K major cities have seen double digit growth since the EU referendum, new data from Home Track shows.
Birmingham, Manchester and Liverpool have seen prices rise by 16 % , 15 % and 11% respectively since June 2016. On the other hand, southern cities like London, Oxford and Cambridge, which witnessed strong growth in the aftermath of the recession have seen prices staying flat or stagnating.
As the debate around Brexit intensifies there has been renewed focus on what this means for the housing market’. ‘It is clear from the transactional data that households are continuing to buy property at a steady rate and the impetus for growth in both activity and prices is focused in regional housing markets, says the report’.
This is half the annual growth rate over the last five years, which stands at six per cent. But slower headline growth is largely a result of material slowdown in London and other cities in Southern England, Zoopla said.
In contrast, Edinburgh saw the fastest annual growth at 6.8% in December, followed by Liverpool at 6.3% and Birmingham, Nottingham and Cardiff, which all saw price growth of 5.9%.
Richard Donnell, research and insight director at Zoopla, said: ‘Weaker growth in London, Cambridge and Aberdeen has been a large drag on the headline rate of house price growth across the UK cities index over the last year.
‘House prices in London have been falling for almost 12 months while the rate of growth has slowed across cities in southern England, a result of growing affordability pressures, higher transaction costs and increased uncertainty.
‘The strongest performing cities are outside south eastern England where affordability remains attractive and employment levels are rising.’
He also added, London’s decline will continue, expecting prices to fall two per cent in 2019, and especially in central parts of the capital where prices have grown most over the last decade but where prices are currently down four per cent.
‘Prices continue to increase slowly in the more affordable outer and commuter areas of London’.