House price growth rises by 5.1%
The first half of 2017 saw average house price growth rise by 5.1%, the latest Hometrack UK Cities House Price Index reveals.
Despite the overall incline London house price growth fell by 2.6% to the lowest level for more than five years.
Richard Donnell, research and insight director at Hometrack, said: “The Brexit impact was greatest over the second half of 2016 but house price growth has picked up over the last six months.
“This is consistent with an 11% increase in the number of home purchase mortgages, which is also 5% higher than the five-year average.”
Birmingham is the fastest growing city with 7.8% annual price growth which is supported by record low mortgage rates and falling unemployment.
House price inflation in the capital saw a year-on-year decrease of 10.1% due to affordability pressures and the impact of the Brexit vote on buyer sentiment.
Donnell concluded: “Although house price inflation has fallen sharply in the capital it is starting to flatten out and the rate of growth is likely to avoid year on year price falls in the coming months.”