24th October 2014
Cambridge has surpassed London in the property price rebound, as values surged 32.5% since their 2007 peak.
Property analyst Hometrack said the average Cambridge house price of £348,000 meant the cost of buying in the university down had increased 32.5% since the 2007 housing boom, while London prices have risen on average 29% since the 2007 peak to £398,700.
The analysis is part of a series charting house prices in 20 cities across the UK and shows property in Bristol, Oxford, Portsmouth, Southampton, Bournemouth and Aberdeen is selling above pre-financial crisis peaks while those in Cardiff are on the edge of the peak.
However, Belfast, Leeds, Glasgow, Edinburgh, Liverpool, Manchester and Newcastle still have some way to go before they match 2007 levels, with Glasgow and Leicester seeing the lowest increases.
Across the UK a typical house price has increased 9%, or £15,300, to £184,580 but fourteen out of the 20 cities have recorded a rise below that level.
Over the past year, London property has increased an average of 18.1%, or £61,000, while a home in Cambridge has seen a 17.9% uplift, or £53,000 in cash terms over the past 12 months.
The average house in Bristol has seen an average £26,900 added to its value in a year, a rise of 14.1%. Glasgow recorded the smallest annual increase in prices, lifting just 4.3% or £4,600 to £109,200.
There is evidence that the sharp increases seen in the London market are starting to slow, said Hometrack, with house price values growing 0.4% month-on-month compared with a recent monthly peak of 1%, seen in April.
Richard Donnell, director of research at Hometrack, said cities provide a strong indication of the health of the overall housing market as there are a hub for employment, business growth and demand for homes.
‘Local economies drive their local housing markets…By focusing on cities, we can get a more accurate picture of the health of the housing market,’ he said.
‘Expectations that strong house price growth in the south of England would ripple out across the country were over-done. While house price growth has increased across all cities in the last year the rate of growth in the majority of cities is below the UK average. There is little evidence of a runaway surge in prices and the rate of growth appears to be moderating.’