Prices rocket at fastest rate in 11 years

Mortgage Introducer

August 21, 2015

The biggest risers were Cambridge (7.3%), Edinburgh (6%) and London (4.3%).

In terms of year-on-year growth Cambridge again leads the way (10.9%), followed by Oxford (9.8%), London (9.4%) and Bristol (8.6%).

Richard Donnell, director of research, Hometrack, said city level house price inflation is on track for 10% growth in 2015.

He added: “There remains further upside for city level house prices over the remainder of 2015. Low mortgage rates, economic growth and rising earnings will continue to stimulate demand and put an upward pressure on prices.

“As an international city, London is out on its own setting new highs for prices and affordability. How long this can be sustained is down to the prospects for the different segments of demand, specifically international buyers, domestic investors and domestic home owners.”

All cities with the exception of Aberdeen are registering house growth ahead of annual growth in average earnings, which currently stand at 2.4%.

Nine of 20 cities are still below their 2007 house price peak, including Liverpool (-13.2%) and Glasgow (-11.2%).

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