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CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 25 October 2016

London market steadies

Price growth slowing

House price growth across the UK 20 Cities Index was +8.5 per cent over the year to September 2016, according to HomeTrack, with growth slower than it has been, but comfortably faster than the UK national average. 

Price growth across the main cities continues to run at more than three times the rate of growth in earnings, largely thanks to low mortgage rates.  

London's quarterly house price index growth slowed to +0.9 per cent in the third quarter of the calendar year, to a current price of £480,500. 

Annual price in the capital city was down to +10 per cent, and is expected to ease to around +5 per cent by the end of the year. 

I was out and about looking at some stock around London yesterday.

Activity levels are definitely well down, but that said with the pound sterling having declined sharply since the EU referendum, enquiries from non-resident buyers have jumped, particularly in the sub-£1 million price bracket. 

The strongest quarterly price growth was seen in Cambridge (+3 per cent), with annual price growth in Cambridge now a steadier +8 per cent, following some blistering gains. 

A number of regional cities have improved markedly from a low base, after a very poor run since the financial crisis.  

The worst performing UK city market has been oil-exposed Aberdeen where prices have dropped by a punishing -9.5 per cent over the year to September, to an average of £181,300.