The latest UK Cities House Price Index from Hometrack has revealed that annual price inflation in April reached 4.9% compared to 6.9% per annum over the past five years. However, the annual rise is an improvement on the 4.2% annual average recorded over the last two years.
Manchester has the fastest annual growth rate at 7.7%, according to Hometrack. Overall, City house prices have increased 2.9% in the last three months compared to a 0.5% decline in Q4 2017 when price falls across London impacted headline growth.
Prices are falling across 16 local authorities in London
The pace of price reductions in London has moderated over the last quarter. House prices are 0.8% higher than a year ago, although 16 of the 46 local authorities that make up the London city index are registering negative growth of up to -2.8%. However, property sales are still being agreed at around 5% below the asking price on average in the capital. But London overall has achieved a five year compound annual growth rate (CAGR) of 8.6%, which is second only to Bristol. The current price of a property in London is £487,600.