House prices in major cities outside the south east and London are starting to cool down, a new price tracker has found.
According to Hometrack’s inaugural UK Cities House Price Index, 14 out of the 20 UK cities covered on the index are showing price growth at a much slower level than the national average in percentage terms.
The figures show that while prices burgeoned by 18.1 per cent in London over the past 12 months, they rose just 4.3 per cent in Glasgow. The UK national average, the Hometrack index revealed, is 9 per cent growth.
In real terms, this means the average house price in London saw a £61,000 hike over the 12 months, while Glasgow saw a rise of £5,000 over the same period (to September 2014). The national average house price has grown more than £15,000 in the last 12 months.
Jeremy Duncombe, director for Legal & General Mortgage Club, said: “This disparity is often hidden behind headline statistics suggesting that house prices are rising at a uniform rate across the country.
“Sustainable house price increases across all of the country would help to keep homes affordable for first time buyers, as well as allow those who are already homeowners to move up the property ladder. Building more houses is a key way to keep prices at a manageable level by ensuring supply is in line with demand.”
Adviser view
Tony Harris, founder of Surrey-based Contractor Financials, said: “I had been concerned a couple of years ago when banks started to bring in more stringent income checks, that more non-standard borrowers would find the door slammed in their faces, but we haven’t seen too many problems.
“Most of our clients were buying in London and the south east and, immediately post-the mortgage market review, there was pressure, and it was difficult to deliver because of slower service from the banks. But I think the mortgage market review has worked out favourably, and I am looking forward to 2015 with a degree of optimism.”
