Bristol and Liverpool see record house price growth while London property values will grind to a halt this year
- House price growth in London is expected to fall close to zero this year
- Property prices in cities like Bristol, Oxford and Manchester are rising fast
The heat in London's property market is fading fast, with house prices in the capital growing at their slowest pace since June 2013.
In the year to the end of January, the cost of a home in London increased by 6.4 per cent, with growth expect to hover around zero this year, property consultancy Hometrack said.
While the capital's housing market is cooling, house price growth in popular cities like Bristol, Manchester and Liverpool is surging.
Slowing down: House prices in London grew at their slowest pace since June 2013 last month
Property prices in London are now around 85 per cent higher than they were in 2009, with the average home costing over £480,000, Hometrack said.
In the last year, the cost of a home in Bristol increased by 9.5 per cent to an average of £263,200, while in Oxford prices went up by 9.2 per cent to £430,200.
In Manchester, property prices have gone up by 8.3 per cent to an average of £150,600, while in Liverpool they have increased by 7.1 per cent to just above £116,000.
In Scotland, house prices in Glasgow increased by 5.7 per cent to an average of £115,200, while in pricier Edinburgh, prices grew by 3.7 per cent to around £200,700.
Out of all the UK's big cities, Aberdeen was the only one to see house prices fall in the past year, with house prices down 3.7 per cent to an average of £186,200.
Richard Donnell, insight director at Hometrack, said: 'Growth in London has been superseded by large regional cities such as Manchester, Liverpool and Birmingham.
'When you consider that house prices in London are 85% higher than they were in 2009 it is not surprising that the pace of increases is slowing toward a standstill as very high house price increases mean affordability is stretched.'
Mr Donnell said the timing and scale of future house price growth in general would depend upon the outlook for jobs, incomes and mortgage rates.
Experts claim April's stamp duty hike has hit the top end of London's market hardest, with investors unwilling to fork out the additional costs.
In its last set of data published in December, the Office for National Statistics said UK house prices had increased by 7.2 per cent in the year, up from 6.1 per cent a year earlier.
Bristol: House prices in Bristol have increased by 9.5 per cent in the past year
The average UK house price was £220,000 in December, which is £15,000 more than in December a year earlier.
London continues to be the region with the highest average house price at £484,000, followed by the South East and the East of England, which stand at £316,000 and £282,000 respectively, the ONS said.
In December, the most expensive London borough to live in was Kensington and Chelsea, where the cost of an average house was £1.3million.
Growth: House price growth in UK cities since 2009, according to Hometrack
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