The really useful index from Zoopla/Hometrack shows a modest increase in city house prices. Once again, it is Northern England leading the way.
UK house price inflation in the 12 months to June 2020 edged higher to +2.7%, the highest level of annual growth for almost 2 years. The post election rebound boosted sales and activity over Q1 which is still feeding into the headline index.
The monthly UK growth rate has halved to +0.2% and city price indices are registering slower annual growth as a result of the lockdown.
There is no evidence of any material, localised price falls across the index series at regional or city level. A small proportion of local areas are registering small month on month price falls of up to 0.2%.
Given current trends we do not expect the headline rate of annual growth to move into negative territory over 2020. A growing imbalance of supply and demand is set to support prices over 2020 and sales agreed today will be completing up until November. Any price falls in the headline UK Index are more likely in 2021 H1.
Demand increases most in Northern cities
The increase in demand compared to 2019 has been stronger in regional cities across northern England. The flow of new supply has been impacted across all areas as a result of the market closure.
The greatest short term support for prices will be in cities where demand has grown the most over the first 7 months of 2020 compared to 2019. Manchester, Liverpool and Nottingham have registered the highest growth in demand, and it is notable that they are also in the top 5 cities for annual house price growth.
All content from Zoopla/Hometrack. The full report may be found here