Despite uncertainty over Brexit, six of the UK’s largest cities have posted year-on-year growth figures over 6%.
Talk of Brexit might dominate the news agenda, but the impact on the UK housing market since the vote to leave in 2016 has been limited.
According to the latest Cities House Price Index from Zoopla partners Hometrack, property in regional markets appears to be shrugging off any uncertainty, with six of the UK’s largest cities posting year-on-year growth figures over 6%:
- Leicester (7.7%)
- Edinburgh (7.4%)
- Manchester (6.3%)
- Birmingham (6.2%)
- Nottingham (6.1%)
- Liverpool (6.0%)
New research included in the report found that the discount between asking and achieved house prices continued to narrow across regional cities. It's fallen below 2% in Manchester and reached a five-year low in Liverpool. Sales volumes continued to keep pace with new supply in regional cities, supporting price growth.
Since the Referendum vote in June 2016, Birmingham, Edinburgh and Manchester have all registered house price growth of 15%, almost three times the growth in average earnings.
In contrast, house prices in London are less than 2% higher than in June 2016. The capital is currently registering a year-on-year fall in house prices of 0.4%.
The marked slowdown in market activity since 2015 is more attributed to stretched affordability, multiple tax changes and new mortgage regulations than as a direct result of Brexit. Cambridge and Aberdeen are the only other cities to be registering year-on-year price falls.
Percentage change year-on-year
Discount to asking price
|20 city index||£255,200||3.2%||3.3%|
Source: Hometrack UK Cities Index, Zoopla – note that property in Scotland sells at a premium to asking price hence the ‘negative’ discount.
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