City house price rises 'outpacing UK average'
12th Mar 2012
House prices in UK cities have risen by an average 382 per cent over the past 25 years, according to the latest report, which is outpacing the average increase across UK property.
As part of this year's Diamond Jubilee celebrations, 26 towns have applied for city status, and to commemorate this Halifax published a study looking at how house prices in cities have performed over the last quarter of a century.
The report shows that house prices in cities have risen from £35,209 in 1986 to £169,707 in 2011, which exceeds the increase of 347 per cent for the UK as a whole over the period.
According to the data, Truro (550 per cent), Westminster (522 per cent) and Edinburgh (509 per cent) are the three cities that have recorded the biggest price rises since 1986.
The study indicates that the majority of cities outperformed their region in terms of house price growth between 1986 and 2011, with 40 of the 59 cities surveyed recording average house price increases above their region's average over the period.
Commenting on the figures, Martin Ellis, housing economist at Halifax, said that city house prices are generally supported by demand from those looking to gain from the economic and lifestyle benefits often associated with residing in major urban areas.
He noted: "The experience of towns that have been made cities during the past quarter of a century has been mixed. Some have gone on to outperform their region after gaining city status whereas they had underperformed previously. "
However, this has not always been the case, and there are therefore no guarantees for homeowners in whichever town is awarded city status this year that they will see a benefit in the form of improved house price performance, the expert noted.
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