House prices in the UK’s most affordable cities are outgrowing those of other areas.
Hometrack’s UK Cities House Price Index has revealed that the highest price growth is happening in those urban areas most weakened by the 2008 financial crash.
Liverpool leads the way
Liverpool has registered the UK’s highest annual house price growth rate at 5.8 percent. The cities of Leicester, Manchester and Glasgow have also seen house price growth over 5 percent.
According to Hometrack, sales of houses in Glasgow and Liverpool are, respectively, 12 percent and 19 percent higher than in 2015.
Meanwhile, UK city house price growth is sitting at 1.7 percent, the lowest growth rate since May 2012 according to data in the latest Hometrack report.
Demand weakens in south
Southern cities have seen a drop in sales volumes, thanks to weaker demand, but regional cities are reporting sales volumes up to 19 percent higher than four years ago.
For example, sales are down by 20 percent in Cambridge but up by 19 percent in Liverpool; down by 13 percent in Portsmouth but up by 5 percent in Newcastle.
Part of housing cycle
The report notes: “Falling sales volumes after a prolonged period of high house price growth is part and parcel of the unfolding housing cycle.
“The reality is that the more house prices increase over time, the more buyers are priced out of the market through a mix of affordability factors and higher moving costs.”