Southern Cities’ Property Prices Static
According to a major property market analyst that services companies across the residential sector, southern cities property prices are remaining static.
The analyst’s latest UK Cities House Price Index discovered that there is a rise in sellers across southern England who are resigned to having to accept considerably lower than their asking price, to force through a sale. This is in direct contrast to the majority of cities in the Midlands, the North West and Scotland.
The highest discount on properties’ asking prices in the southern cities was on average 4.7% in Cambridge, London and Oxford. The index also shows that Bristol, Portsmouth and Southampton will be if not already, suffering the same fate as affordability levels are dropping.
Across the UK on average city house price inflation remained static at 4.9 % in April. In the capital the average value was only 0.8% higher than twelve months ago. The overall worsening situation was compounded by a subpar average growth in Bristol, Portsmouth and Southampton over the year.
Manchester enjoyed the highest house price increase of 7.7% and not far behind was Edinburgh with 7.4% and 7.2% for Leicester, which are well above the national average.
Insight Director at the property analysts, Richard Donnell, said: “The strength of house price growth and level of discounting from asking prices reveals how the current housing cycle continues to unfold. The overall pace of overall city level growth has lost momentum as a result of virtually static prices in London and slower growth across southern England. Weaker consumer confidence and modest increase in mortgage rates are also impacting demand and mortgage approvals for home purchase have drifted lower in the last quarter.
“The cities index reveals, how macro and local factors such as the strength of the local economy and the relative affordability of housing are influencing the pace and direction of house price growth.”