House price growth slows in UK's biggest cities

Annual house price growth in 20 UK cities dipped to 8.2% last month, according to the latest figures from Hometrack.

The research firm says this is due to a seasonal lull in the market alongside adjusting to new conditions following the Brexit vote and the introduction of a stamp duty surcharge.

The index also shows that quarterly growth was at its lowest level for six months.

Bristol recorded the best annual growth at 13.1%, bringing the average house price in the city to £256,100.

Annual inflation in Aberdeen, meanwhile, stood at -6.7% during August, the lowest figure recorded by Hometrack.

The most positive quarterly growth was seen in Liverpool at 4.1%, while the lowest quarterly figures of -0.4% and -0.8% were recorded in Cambridge and Leeds respectively.

In London, annual inflation stood at 10.4% during August, while quarterly growth was steady at 0.9%. 

Hometrack calculated the average house price in the capital during August to be £475,700.

“Regional cities such as Glasgow, Liverpool, Birmingham and Edinburgh have all posted above average growth in the last three months as low mortgage rates and affordable property prices support growth," comments Richard Donnell, Hometrack's insight director.

“On current trends house price growth in London will be running at circa 6% per annum by December and on course for low single digit growth by spring 2017."

"Record unaffordability, tax changes impacting investor demand and high stamp duty costs are all combining to reduce market activity in the face of rising supply," he says.

A separate report, compiled by estate agency Jackson-Stops & Staff, declares the UK property market to be 'peachy' three months on from June's Brexit vote.

Analysing figures from Zoopla, the firm found that the number of properties on the market has increased since the referendum, with the proportion sold falling only marginally in the last three months.

In mid-September there were 1% more properties listed on Zoopla than in mid-June and the proportion sold during this period dropped by 2.5%.

Jackson-Stops reports that Under Agreed Offer properties now represent 36.1% of all properties on the market, down from 39.4% in mid-June.

The firm says the average asking price has fallen by 2% over the course of the last three months, from £297,508 in mid-June, to £291,547 in mid-September.

“Three months after the UK’s historic vote to leave the EU, the property market remains alive and active," says Nick Leeming, chairman of Jackson-Stops & Staff.

"The normal events – families growing, the desire to downsize, a new job, a change of lifestyle – the fundamental drivers for people buying and selling property, have remained unchanged."