House cost development in London has slowed to the exact same rate as inflation, according to Hometrack.
Its index of house rates throughout UK cities discovered that the capital’s yearly rate of development is now 2.6 pc, reaching a five-year low in June.
Richard Donnell, head of research at Hometrack, stated: “In London, the Brexit vote has had a higher influence on purchaser belief and integrated with cost concerns has caused a 10pc decrease in the yearly development rate over the last 12 months.
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House cost change throughout the UK’s 20 greatest cities. Information from Hometrack
“However, although house cost inflation has fallen greatly in the capital it is beginning to flatten out, and the rate of development is most likely to prevent year-on-year rate falls in the coming months.”
Mr Donnell increased his projection of house rate development in cities over 2017 from 4pc, made last December, to 6-7pc.
Thirteen cities throughout the UK have a lower yearly development rate than a year earlier, with 4 – Cambridge, Oxford, Newcastle and Aberdeen – having levels listed below the rate of inflation, leading to unfavorable genuine house rate development. The typical rate of development throughout UK cities was 5.1 pc each year, below 8.8 pc in June 2016.
This slowing down of the marketplace has been taken down mostly by cities in the south of England; Birmingham continued to tape the greatest level of yearly rate development at 7.8 pc, with Manchester and Leeds likewise revealing strong development.