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Annual rate of house price growth hits 9pc

Sarah Davidson

October 24, 2014

However the index has revealed that 14 out of 20 cities recorded house price inflation below the current 9.0 rate.

London and Cambridge led the growth with average house prices increasing by more than £60,000 and £53,000 respectively.

London had the highest annual house price growth of 18.1% while Cambridge saw growth of 17.9%; behind Cambridge was Bristol at 14.1%.

The average UK house has seen its value increase by £15,300 in the past 12 months.

Richard Donnell, research director, Hometrack, said: “Local economies drive their local housing markets.

“Cities are the focus for employment and business growth, which in turn creates demand for housing. By focusing on cities, we can get a more accurate picture of the health of the housing market.

“On a national level, the overall rate of UK house price growth has been significantly enhanced by London, so we are starting to see a corresponding dip in the rate of growth in the national figures as the rate of growth slows in London.”

At the other end of the scale Glasgow saw the lowest house price growth of 4.3% – or £4,500 – while Leicester followed with growth of 4.8%.

Donnell added: “Expectations that strong house price growth in the south of England would ripple out across the country were over-done.

“While house price growth has increased across all cities in the last year the rate of growth in the majority of cities is below the UK average.

“There is little evidence of a runaway surge in prices and the rate of growth appears to be moderating.”


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