Edinburgh house prices jump by 8%
HOUSE prices in Edinburgh rose 8 per cent as house prices across the UK jumped by the highest quarterly level in 11 years as demand for housing continues to outstrip supply, according to property analyst Hometrack.
In Glasgow, the rise was 5.5 per cent with Hometrack adding that in all of the 20 cities it surveys, except Aberdeen, house price growth is greater than the current 2.4 per cent increase in average earnings.
The report said house prices across the country’s major cities lifted 4.3 per cent in the three months to July, the highest quarterly growth since 2004.
It also adds there is scope for further inflation as nine of the 20 cities the survey monitors still have average prices that are lower than their 2007 peak.
It said overall city level house price inflation remains on track for 10 per cent growth this year, from its July rate of 8.5 per cent.
The report said a combination of low mortgage rates, economic growth and rising earnings continue to stimulate demand and put upward pressure on house prices.
It said a new cluster of cities are beginning to “snap at the heels” of year-on-year house price growth of front-running key cities in the South East.
At the head of the pack is Cambridge, which saw prices grow 10.9 per cent year-on-year, followed by Oxford at 9.8 per cent and London with 9.4 per cent growth.
Hometrack director of research Richard Donnell said: “There remains further upside for city level house prices over the remainder of 2015.”
He added: “As an international city, London is out on its own, setting new highs for prices and affordability.
“How long this can be sustained is down to the prospects for the different segments of demand, specifically international buyers, domestic investors and domestic home owners.”
The three cities that are furthest below their 2007 peaks are Belfast, where average house prices are 47.6 per cent of what they were in eight years ago, followed by Liverpool, where prices are 13.2 per cent cheaper, and Glasgow, where they are 11.2 per cent lower.
How house prices have changed in the last year:
:: Aberdeen - minus 0.7 per cent
:: Belfast - 6.5 per cent
:: Birmingham - 4.8 per cent
:: Bournemouth - 5.3 per cent
:: Bristol - 8.6 per cent
:: Cambridge - 10.9 per cent
:: Cardiff - 4.3 per cent
:: Edinburgh - 8 per cent
:: Glasgow - 5.5 per cent
:: Leeds - 4.9 per cent
:: Leicester - 5.4 per cent
:: Liverpool - 4.1 per cent
:: London - 9.4 per cent
:: Manchester - 5.5 per cent
:: Newcastle - 2.5 per cent
:: Nottingham - 6.3 per cent
:: Oxford - 9.8 per cent
:: Portsmouth - 7 per cent
:: Sheffield - 4.2 per cent
:: Southampton - 7.1 per cent