London house price growth has slowed as the new supply of homes coming to the market continues to grow faster than sales, new figures show.
According to Hometrack, average house price growth over the last three months to September rose 0.9%, the lowest quarterly growth rate since January 2015.
The new supply of homes coming to the market has been growing faster than sales, which have fallen back in recent months on weaker demand. Hometrack expects continued slowdown in the rate of house price growth across London in the months ahead.
Average annual growth in the capital is currently 10% while the average price is £480,500.
The overall headline rate of inflation for the UK Cities House Price Index has remained steady month-on-month with the annual rate of growth in September reaching 8.5%, compared to 5.7% 12 months ago.
House price growth has been strongest in cities outside of the South East, with Manchester, Liverpool, Birmingham and Cardiff all showing gains. In these markets affordability remains attractive and prices are rising off a low base.
Cambridge, Oxford, London and Aberdeen have all seen growth fall since the start of the year.
Richard Donnell, Insight Director at Hometrack, said: “In the immediate aftermath of the vote to leave the EU there was little obvious impact on the housing market and the rate of house price growth.
“Three months on and it is becoming clearer that households in large regional cities outside southern England continue to feel confident in buying homes and taking advantage of record low mortgage rates where affordability remains attractive for those with equity. In London market conditions are the opposite and new taxes are hitting investor demand while home owners face stretched affordability levels which are combining to slow the rate of house price growth.”
House price growth in UK cities
| City | Average price | % year-on-year increase Sept 2016 | % last quarter to Sept 2016 vincrease |
| Bristol | £259,800 | 12.3% | 1.1% |
| London | £480,500 | 10.0% | 0.9% |
| Southampton | £216,900 | 8.6% | 1.7% |
| Cambridge | £422,200 | 8.0% | 3.0% |
| Birmingham | £144,900 | 8.0% | 1.7% |
| Portsmouth | £218,500 | 7.9% | 0.4% |
| Manchester | £147,400 | 7.7% | 1.5% |
| Cardiff | £191,800 | 7.7% | 2.5% |
| Bournemouth | £269,600 | 6.7% | 1.8% |
| Liverpool | £112,600 | 6.6% | 2.6% |
| Nottingham | £138,200 | 6.4% | 0.3% |
| Leicester | £156,100 | 6.0% | 1.0% |
| Leeds | £152,800 | 5.8% | 0.1% |
| Oxford | £411,900 | 5.6% | -2.5% |
| Sheffield | £128,500 | 4.0% | 1.0% |
| Glasgow | £113,500 | 4.0% | 0.5% |
| Edinburgh | £201,200 | 3.9% | 1.5% |
| Newcastle | £122,800 | 3.2% | 0.6% |
| Belfast | £126,600 | 2.2% | 0.6% |
| Aberdeen | £181,300 | -9.5% | -3.0% |
| 20 city index | £239,100 | 8.5% | 1.7% |
| UK | £202,900 | 7.2% | 1.4% |
Source: Hometrack UK Cities House Price Index
