Zoopla – Northern house price growth outpaces south
orthern house price growth outpaced the that in the south in July, according to data collected by Zoopla.
House prices in Liverpool and Edinburgh topped the house price growth charts, each rising by 5.8 per cent in the year to July. This was followed by Leicester, where prices increased by 4.4 per cent.
Meanwhile, house price growth in Aberdeen and Oxford declined by 4.8 per cent and 0.4 per cent, respectively, over the same time frame.
House prices remained flat in London, the research adds. The price to earnings ratio is currently 13.1x, having dropped from 14.1x two years ago.
Looking at the UK as a whole, house prices increased by 2.1 per cent year-on-year to reach an average of £220,000.
According to the lettings agency, house prices in 12 cities across the UK outpaced wage growth over the 12 months to July. The data shows that the average earnings have increased by 3.7 per cent on a yearly basis across the UK.
Benham and Reeves director Marc von Grundherr says: “Housing affordability continues to remain an issue for many looking to get on the ladder, particularly within major cities where homeownership is the least obtainable to the average person despite the generally higher level of wages on offer.
“We have seen this improve as a result of healthier wage growth of late, but in cities with the largest property price tags, this improvement in earnings proves insignificant when compared to the continued financial hurdle posed by robust property values.
“Despite the relative affordability of current mortgage rates, these additional charges continue to be one of the biggest deterrents for those looking to buy in our major cities and this, in addition to current market uncertainty, is causing a drag in the rate of house price growth.”
Source: Mortgage Strategy