Latest house price growth in major UK cities
The latest UK Cities House Price Index1 published by Zoopla shows that the gap between asking prices and sale prices has widened recently.
The Index analyses housing market trends at city level across 20 UK cities, plus regions and nationally. It found that the average property sold for 3.9% less than it was advertised for during the first quarter of this year.
In 16 of the 20 cities tracked, discounts on the asking price were higher than they were in 2018.
Moderate house price growth
According to the Index, house price growth across 20 cities was moderate in April with the slowdown moving up from southern England to take in a number of northern cities now feeling an easing in house price inflation.
Year-on-year, house price growth has slowed to an average of 1.7%, down from an annual rate of 1.9% in April last year.
Which cities are most affected?
In London, house prices have dropped by 0.5% in the past year. Properties in London are selling for an average of 5.7% less than originally asked. This figure goes up to 7.6% in inner London where there has been the highest level of price drops.
Those purchasing in Kensington & Chelsea have been able to negotiate double-digit discounts.
Outside of London, house prices have fallen in certain cities. In Cambridge, prices fell by 0.2% in the past year. Southampton also showed below average annual house price inflation at 0.7% as did Portsmouth and Bournemouth, both at 1%.
The best place for discounts was in Aberdeen, where buyers have accepted offers of 8% under the asking price, and property prices have nudged ahead by just 0.3% in the past 12 months.
Buyers in Newcastle, Oxford and Liverpool have also been able to negotiate above-average discounts.
Richard Donnell, research and insight director at Zoopla, said: “Sellers are having to accept slightly higher discounts to the asking price in order to achieve a sale. This is a natural response to weaker market conditions and buyers are starting to negotiate harder on price. We expect the price adjustment in London to continue although we do expect sales volumes to start to tick upwards. The slowdown in the rate of price growth is set to extend further across the south of England, while we expect continued above average house price growth in regional cities where employment levels continue to grow, and affordability is attractive.”
Where are the strongest gains?
In Glasgow, property values increased by 5.1% during the past 12 months. In both Glasgow and Edinburgh, houses were purchased for more than their original asking price, although even here the premium was lower than it was a year ago.
Both Leicester and Liverpool still have robust markets with year-on-year gains of 4.9%. And in Manchester and Nottingham, property values increase by 4.5%.
In Sheffield, Birmingham, Belfast and Edinburgh house price growth was also above 4%.
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