House price inflation in UK cities has seen its slowest growth since May 2012, according to Hometrack, coming in at 1.7 per cent.
Prices in the capital have marginally risen in the year to May 2019, increasing by 0.1 per cent. Meanwhile, the remaining six southern cities covered in the analysis have all recorded their lowest growth rates since 2012.
The largest yearly decline across all the cities in the analysis was Oxford, falling 0.6 per cent. This was followed by Aberdeen, which declined by 0.4 per cent.
In contrast, Liverpool saw the greatest rise, increasing by 5.7 per cent on a yearly basis. Leicester saw the second largest increase, rising by 5.3 per cent.
Further data shows that average sales volumes were down by 13 per cent on 2015 across the southern cities in the analysis – with both London and Cambridge down by 20 per cent.
In contrast, sale volumes were up to 19 per cent higher than in 2015 in regional cites, according to the report.
Benham and Reeves director Marc von Grundherr comments: “The weakest rate of house price growth in just over six years demonstrates the current difficulties faced by many residing and selling in our major cities.
“City living will always command a higher price premium and while these markets are more susceptible to the influences of Brexit doom and gloom at present, they will also be the first to see a sharp revival.
“While a larger degree of buyers remain on the fence for the time being, the capital continues to be the pinnacle of UK property investment and homeownership, and a prolonged period of political uncertainty will not change that.”
Springbok Properties founder and chief executive Shepherd Ncube says: “It would seem a real-life property fable of the tortoise and the hare is materialising across the UK market.
“The cities to have registered more notable price growth levels since the market crash are now seeing this pedigree subside, whilst the less inflated regional cities are demonstrating some stamina to come to the forefront of the price growth rankings.
“Prices are holding firm for the large part and this shows promise for the market beyond Brexit, if we will ever see such a thing.”