House prices in Glasgow and Edinburgh are rising faster than cities across the rest of the UK, Hometrack’s UK Cities House Price Index has found.
Prices jumped by 7.9% and 7.6% in the year to Glasgow (pictured) and Edinburgh respectively, outstripping the highest growing cities in England of Leicester (7.5%) and Birmingham (7.3%).
Richard Donnell, research and insight director at Hometrack, said: “Over the last 12 months there has been a dramatic south to north shift in the momentum of house price growth which has culminated in Glasgow registering the fastest rate of house price inflation in the UK.
“In Glasgow, Edinburgh and many other large regional cities affordability is less of a barrier than in London and the South East, particularly for first-time buyers, and with mortgage rates remaining low this is helping to stimulate demand and increase activity in these markets.”
Another major city in Scotland is the only one where property price inflation is in reverse however, as prices in Aberdeen have fallen by 3.7% in the year to November.
Other cities with only modest growth are Oxford (0.7%), Cambridge (2.0%) and London (2.7%).
On average city-level house price inflation reached 6.3% in the year to November, up from 4.9% a year ago.
Donnell added: “As we move into 2018 increases in regional city house prices is likely to offset very low nominal growth in London.
“There is 20-25% of additional upside in house prices in regional cities with a simple adjustment on affordability metrics.
“Add to this the impact of lower mortgage rates and the clouds of uncertainty around Brexit seeming set to lift in 2018 and we expect regional cities to continue above average house price growth next year and overall city house price growth to hit 5%.”