It is no shock that UK house prices have risen over the last year but, it is actually reported that they have increased by an average of £11,500 over the last 12 months to May. There are seven cities in southern England that have considerably outdone this, widening the north-south house price gap even further.
Hometrack have said that the average house in the UK now costs £189,400 with London more than double this figure at £425,700, but out of 20 cities analysed by the Hometrack consultancy Oxford, its recorded the highest gains in the last 12 months of £41,700 – so that’s nearly quadruple the UK average of £11,500.
So, here are the other figures- London (£38,900), Cambridge (£23,900), Bristol (£22,400), Southampton (£15,300), Bournemouth (£15,300) and Portsmouth (£15,000).
All of the 20 cities have recorded increases in the last year, but three Northern cities performed the worst adding less than half the UK average to house prices. Liverpool (£4,200), Newcastle (£4,700) and Sheffield (£5,300) are still 14%, 8.5% and 3.8% respectively below their 2007 peak.
Richard Donnell Hometrack director says “An increasing proportion of households are feeling the benefits of the improving economy, which means that house price growth is set to continue in the coming months. The greatest risk is an earlier than expected increase in interest rates which would knock market sentiment”.
He also warns that “the strong demand-side recovery seen in southern England has yet to spread to other cities revealing the diverse nature of the housing market. All cities are making gains at different rates of growth, but the cities with the biggest increases all have something in common – strong local economies.”
Hometrack are part of a group of nine cities in the North of England, Scotland and North Ireland that are recovering at a much slower pace due to weaker demand from house buyers.