UK house prices have increased by 8.9% year-on-year but there has been a continued slowdown in the monthly rate of growth in recent months, Hometrack has revealed in its latest UK Cities House Price Index. The rate of house price growth in London slowed by two-thirds in the last quarter compared to the 12 month average (0.5% compared to 1.4%) with Edinburgh, Glasgow, Southampton, Bristol and Birmingham now all registering higher inflation than the Capital in the last 3 months as demand for housing continues to push prices ahead. This growth is being supported by the fact that house prices are still rising off a low base in many cities.

House prices are above their 2007 peak in eight cities with London (30.5%), Cambridge (28.7%) and Oxford (21.9%) leading the pack but these markets are starting to register the clearest slowdown. This translated to an average annual increase in London property values of £57,000, which is nearly four times the national average of £15,200 and almost twice the UK’s average income. Liverpool recorded the lowest increase in values with just £3,000 added to house prices in the last year.