All cities record house price growth as London stabilises: Zoopla

Price growth ranged from 6.8% in Leicester to 0.2% in Cambridge, but all 20 cities in the index recorded positive annual price growth for the first time in 3.5 years.

Annual growth picked up marginally to 0.4% in London following a three-year period of price falls.

Additionally, the number of London postcodes registering price falls is starting to reduce – down from 69% in October 2018 to 55%.

Seven cities saw price growth of more than 5%, led by Leicester, Manchester and Glasgow.

However Zoopla says the rate of price inflation in regional cities is starting to moderate as a result of growing affordability pressures as well as increased uncertainty.

Richard Donnell, research and insight director at Zoopla, commented: “Our latest index results show that house prices in London are starting to firm. Buyers who have stood on the side-lines since 2015 are starting to see greater value for money, seeking out buying opportunities amidst the uncertainty of Brexit. This is supported by greater realism on pricing by sellers. We do not believe London prices will rebound but it is a positive for sales volumes which are still 25% lower than in 2016.

“House price growth has remained strong in regional cities over the last three years rising as much as 17% since the Brexit vote but signs of weaker growth are building as affordability pressures grow.

“While the Brexit debate reaches fever pitch data on housing sales and demand for mortgages shows buyers are largely unmoved. Transaction volumes over 2018 remained in line with the five-year average. The latest data shows that housing transactions have increased slightly in the first two months of 2019. With unemployment at a record low and mortgage rates still averaging 2%, buyers appear to be largely shrugging off Brexit uncertainty until there is a material change in the overall outlook.”