City house price growth hits 2012 low: Zoopla

The falling figures were exacerbated by the slowdown in London extending to cities across southern England with price growth ranging from -0.6% in Oxford to +2.2% in Bristol.

The data found that housing sales in southern England are down 13% since 2015, which Zoopla says is primarily due to affordability pressures, higher stamp duty costs and Brexit uncertainty.

Conversely, northern cities continue to defy the slowdown in southern England with house price growth in this part of the country dominating the top spots in the March data.

Liverpool leads the way with average house prices up 5.7% annually, while Leicester, Manchester and Glasgow are also registering house price growth in excess of 5% per annum.

Prices in Glasgow (7%) and Liverpool (4%) are still only just above the price levels recorded in 2008.

Liverpool and Glasgow have also registered the highest increase in housing sales since 2015 of all the cities, with transactions up by 19% and 12% respectively. On average, property sales increased by 6% across all cities in northern England in the last three years.

Richard Donnell, research and insight director at Zoopla, commented: “The housing cycle continues to unfold at different speeds across UK cities. London has led the overall market along with Cambridge and Oxford. While sales in London are down 20% on 2015 levels, prices are flat over the last 12 months. The signs of firmer pricing we recorded last month have continued into March with fewer London postcodes registering price falls. More realistic pricing and better value for money for potential buyers means sales volumes have stabilised.

“Cities across southern England are 18-24 months behind London. House prices have increased significantly ahead of earnings in recent years causing the rate of price growth to now slow due to weaker demand and lower sales volumes. Price growth is set to remain weak as affordability levels start to re-align with what buyers are prepared to spend.

“House prices and sales volumes continue to increase in regional cities outside southern England. Prices in these cities have recorded modest gains over the course of the last decade and affordability remains attractive. As employment levels and incomes rise, households have the confidence to bid up the cost of housing, with four cities registering price growth of 5% or more per annum.”