UK regional house prices rose faster than their London counterparts, according to Hometrack.
The UK’s 12 largest regional cities registered higher price rises year on year than central London at the end of the first quarter of 2015.
In its latest UK Cities House Price Index, Hometrack said it was the first time since 2005 that regional cities had outperformed the capital.
Growth has slowed in central London to just 3% and in greater London by one-third to 11.8%, Hometrack said.
Some of London’s most valuable boroughs, such as Kensington & Chelsea and Hammersmith & Fulham (3.4% and 5.1%, respectively) have slowed as a result of political uncertainty, the threat of a mansion tax and affordability pressures.
London’s double-digit growth, however, is being sustained by lower value and relatively affordable markets.
Glasgow rose 7.6%, while Manchester and Leeds rose by 6.8% and 6.6%, respectively.
Hometrack said the average UK house price had grown by more than one-fifth from its 2009 trough to £186,878 (€261,244), supported by a 59% increase in London.
The London boroughs of Newham, Barking and Dagenham, Greenwich and Croydon are registering the highest rates of annual house-price growth, ranging from 12.1% to 14.2%.
Overall, UK house prices increased by 0.8% in the first quarter and 20.6% relative to the 2009 trough.
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