House price growth slows across cities as uncertainty spreads among buyers

House price growth has slowed down in 13 cities, according to new data from Zoopla.

A study of 20 UK cities showed there was a 2.9% price increase in the year to January, but warns that some cities like Edinburgh, Bournemouth and Portsmouth have seen a sharp slowdown.

London and Aberdeen report the biggest discounts on asking price, with the average in the capital being £24,450 or 5.1%. It is also taking nearly 14 weeks on average to sell a property in London.

Leicester at 6%, Belfast and Manchester have the fastest growing prices, but Nottingham has the lowest discount rates (2.2%) and quickest sale times at eight weeks.

Richard Donnell, research director at Zoopla, said: “Underlying market conditions remain strong in regional cities with the discounts from asking prices continuing to narrow as low mortgage rates and rising employment continue to stimulate demand for housing.

“However, the speed of price growth has moderated on affordability pressures and increased uncertainty.

“The current housing cycle started almost a decade ago and is unfolding at different speeds across each city driven by local factors, primarily growth in incomes and employment and overall levels of housing affordability.

“Three years ago London house prices were rising in double digits, and the discount to asking price was just 1%.

“Affordability pressures and tax changes have impacted demand for housing and the result has been a widening in discounts from asking prices as a result of price-sensitive buyers and sellers reluctant to provide significant discounts.”

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