The latest UK cities house price index reveals that average prices increased by 2.8 per cent over the last year in UK cities, the latest Zoopla UK Cities Index has revealed. It is the first time since August 2015 that the annual price growth has been positive across all 20 cities. The property experts have said this is primarily a result of growth finally turning positive in Aberdeen. Across the UK, average house prices increased by 2.8 per cent over the last year.
This ranges from an increase of 6.8 per cent in Leicester, to just 0.2 per cent in Cambridge.
In total, seven UK cities had annual house price growth of five per cent or more.
While Leicester topped the list, Manchester, Glasgow, and Belfast followed closely behind.
Meanwhile, the rate of growth in London increased by 0.4 per cent annually in February 2019.
In relation to the capital, Zoopla suggested that buyers who have delayed purchases since 2015 could be starting to see greater value for money, by seeking out buying opportunities while Brexit uncertainty impacts market sentiment.
The amount of postcodes in London registering price falls has also reduced recently.
The data shows that this now stands at 55 per cent, rather than 69 per cent in October last year.
The rate at which prices are falling in these markets is relatively low, at a decrease of less than five per cent.
So, what predications have Zoopla made about the property market in the near future?
Having looked at the statistics, the company explained that they thought the rate of price inflation in regional cities would continue to moderate throughout the rest of the year, and predicted weaker growth due to growing affordability pressures as well as increased uncertainty.
Richard Donnell, Research and Insight Director at Zoopla, said: “Our latest index results show that house prices in London are starting to firm.
“Buyers who have stood on the side-lines since 2015 are starting to see greater value for money, seeking out buying opportunities amidst the uncertainty of Brexit.
“This is supported by greater realism on pricing by sellers. We do not believe London prices will rebound but it is a positive for sales volumes which are still 25 per cent lower than in 2016.”
He continued: “House price growth has remained strong in regional cities over the last 3 years rising as much as 17 per cent since the Brexit vote but signs of weaker growth are building as affordability pressures grow.
“While the Brexit debate reaches fever pitch data on housing sales and demand for mortgages shows buyers are largely unmoved. Transaction volumes over 2018 remained in line with the 5-year average. The latest data shows that housing transactions have increased slightly in the first two months of 2019.
“With unemployment at a record low and mortgage rates still averaging two per cent, buyers appear to be largely shrugging off Brexit uncertainty until there is a material change in the overall outlook.”