House prices in major UK cities to slow in 2019 but London will fall

House prices have slowed across the majority of the UK’s biggest cities to rise at their lowest level in five years – and this trend is set to accelerate into 2019 as London property values fall.

This year, Manchester, Liverpool, Cardiff and Newcastle are the only major cities to have seen prices grow faster than they did in 2017, while the other 16 have all seen slower growth, according to Hometrack.

House price inflation across the UK’s biggest cities was 2.6 per cent this year, down from 3 per cent in 2017, mostly because of falls in London and a sustained slowdown across cities in the South.

Annual price growth has eased to its lowest level since 2012

House prices in London are still 55 per cent higher than their 2007 peak, the figures show, hence Hometrack said recent house price falls are doing little to materially change the affordability picture. 

However, Hometrack expects prices to grow by up to 5 per cent in the most affordable markets such as Liverpool and Glasgow.

At present, Edinburgh is currently the fastest growing city, with prices up 6.6 per cent, followed by Manchester and Birmingham also running at above 6 per cent. 

However, only four cities are registering higher levels of house price growth than this time a year ago – Manchester, Liverpool, Cardiff and Newcastle.

The cities that have the seen the greatest slowdown are all located in the south of England, such as Bournemouth, Portsmouth and Bristol. 

Cambridge and Aberdeen were the only other two cities, aside from London, to see prices fall, down 1.1 per cent and 4.1 per cent respectively compared to November last year.