Oxford has topped the list of UK cities with the highest house price growth in June, surpassing even London, the latest data from Hometrack reveals.
Prices in Oxford surged by 10.3 per cent year-on-year, while in London they grew by 9.8 per cent. The third-highest increase last month was recorded in Glasgow (5.5 per cent on June 2014).
Oxford, London and Glasgow are also the fastest growing cities in the first half of 2015. The weakest growth has been registered in Aberdeen where average prices have been flat.
Whilst conditions in the North are improving, there is still a gap between current prices and pre-crisis levels. The so-called ‘northern powerhouse’ cities of Leeds, Manchester, Newcastle, Liverpool and Sheffield have all registered a pick-up in growth since 2013 but with average prices still below 2007 levels.
The overall house price index for all 20 cities shows an increase of 8.4 per cent. While there has been a slowdown over the past six months, prices have started to climb again in the last quarter helped by low mortgage rates and the improving economic outlook.
The biggest risk for the property market now is a potential increase in interest rates, according to the research.
Commenting on the figures Ben Thompson, managing director at estateagent4me, said:
“Todays figures show there has been a steady rise in UK house prices, with values up by 6.4% on average in the first half of 2015. Although homeowners may celebrate this rise in the value of their home, these increases are significantly above inflation and a sign that the housing market may be overheating.
“Often, the assumption is that house prices are pushed up by those in London. However, these statistics show that areas such as Oxford and Bristol are also seeing big jumps in prices.
“Similarly, our Estate Agent Performance Index found that although properties in London have the highest average price of £499,995, the housing market is moving fastest in Reading and Bristol where estate agents can sell houses in an average of 26 days.
For the rest of the year, it is likely that areas immediately outside of London will continue to drive house price increases as the cost of living in London forces many to buy outside the capital.”
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