House price inflation in UK cities hit 3.2 per cent in September, down from 3.8 per cent a year ago. Latest figures from Hometrack showed that 54 per cent of London City postcodes are registering annual price falls.
This is more than the 45 per cent reported six months ago but less than in June as more areas start to register monthly price increases.
However it wasn’t all bad news across the country with house prices in five UK cities increasing by more than 6 per cent a year.
Liverpool recorded annual inflation at 6.9 per cent, followed by Birmingham (6.5 per cent) and Leicester (6.4 per cent).
Danny Belton, head of lender relationships at Legal & General Mortgage Club, said: “The North/South divide has truly been turned on its head, as more and more first-time buyers and homemovers turn towards regional cities for better value for money.
‘Strong economic hubs in the Northern powerhouses are making bricks and mortar in these locations particularly attractive to younger generations here and buy-to-let landlords.
“However, with rising living costs, saving for a deposit remains one of the biggest challenges for potential buyers. Affordability challenges remain, which means that speaking to a mortgage adviser is still a sensible first step.”
| City | Average price | Trough-current | Peak-current | Last 12 months | Last 3 months | Last month |
| Aberdeen | £163,200 | 6.50% | -5.50% | -4.40% | 0.50% | 0.30% |
| Belfast | £129,700 | 28.40% | -41.90% | 3.80% | 0.50% | -0.90% |
| Birmingham | £163,500 | 41.30% | 19.40% | 6.50% | 2.60% | 0.50% |
| Bournemouth | £290,400 | 52.00% | 25.00% | 3.20% | 0.00% | -0.20% |
| Bristol | £277,600 | 71.60% | 39.20% | 1.20% | -0.50% | -0.50% |
| Cambridge | £435,500 | 88.30% | 56.60% | 0.40% | 1.30% | -0.30% |
| Cardiff | £206,200 | 39.90% | 16.80% | 4.50% | 1.00% | 0.20% |
| Edinburgh | £231,700 | 29.80% | 9.10% | 4.70% | 1.60% | -0.20% |
| Glasgow | £122,800 | 22.60% | -0.40% | 6.20% | 1.40% | 0.20% |
| Leeds | £164,900 | 31.40% | 8.60% | 4.30% | 1.00% | 0.10% |
| Leicester | £174,800 | 46.60% | 23.40% | 6.40% | 1.90% | 0.50% |
| Liverpool | £120,500 | 22.70% | -3.80% | 6.90% | 2.80% | 0.70% |
| London | £484,400 | 84.80% | 56.10% | -0.40% | 0.40% | 0.10% |
| Manchester | £167,800 | 39.60% | 17.10% | 6.20% | 1.90% | 0.40% |
| Newcastle | £129,300 | 17.10% | -2.20% | 2.80% | 1.30% | 0.40% |
| Nottingham | £152,300 | 41.50% | 19.00% | 5.40% | 1.30% | 0.00% |
| Oxford | £423,300 | 75.70% | 49.80% | 5.50% | 2.30% | 0.60% |
| Portsmouth | £240,600 | 53.20% | 30.30% | 2.90% | 0.60% | 0.30% |
| Sheffield | £139,500 | 28.50% | 10.10% | 5.80% | 3.30% | 1.10% |
| Southampton | £228,200 | 48.60% | 24.50% | 1.90% | 0.40% | 0.00% |
| UK | £217,400 | 41.40% | 20.20% | 3.40% | 1.40% | 0.30% |
In chancellor Philip Hammond’s Budget on Monday (October 29) there was good news for first-time buyers.
The Help to Buy equity loan scheme was extended by two years, now running until 2023 rather than 2021.
Additionally, the new scheme will be for first-time buyers only and a new regional property price cap will be applied to the scheme from April 2021 onwards.
The chancellor also announced that stamp duty relief will be extended to those who purchase properties up to a value of £500,000 through the shared ownership scheme.
This policy will be backdated to the last budget so that anyone who has purchased a property through the scheme since 22 November 2017 will be entitled a refund.
Source: FT Adviser