(Alliance News) - Growth in house prices in UK cities nearly reached a three-year high, with the increase mainly driven by growth across southern cities in the country.
According to the latest Zoopla UK Cities House Price Index, the UK city house price inflation in January stood at 3.9% year-on-year, with the average price at GBP258,100, having continued its rise since August.
According to the data, all cities except for Aberdeen recorded price rises of at least 2% per annum since February 2017. Inflation ranges from 5.9% growth in Edinburgh and a 4.3% decline in Aberdeen.
Zoopla however noted that growth in supply had failed to keep pace with demand, with the total stock of homes available to buy across UK cities was just 2.6% higher year-on-year.
In nine cities, the stock of homes for sale were lower than the year prior, three of which were Edinburgh, Leicester and Nottingham, cities which recorded strong growth in prices.
"It has taken twelve years for house prices in all English cities to return to their previous pre-crisis levels. Some cities returned to 2007 levels within four years, as the economy and job growth rebounded. In others, it has taken much longer as the mismatch between demand and supply has been less pronounced. An imbalance between supply and demand is supporting the current rate of house price growth - a trend we expect to remain in place over the first half," said Richard Donnell, research & insight director.
"Strong demand and attractive affordability are sustaining above average price growth in Nottingham despite an increase in supply. The same will apply to other cities including Liverpool and Manchester. The growth in supply in Oxford and Cambridge is more likely a result of sellers, who were sitting on their hands waiting for market conditions to improve, before eventually deciding to make their move, encouraged by improving housing market sentiment," Donnell added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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