House price growth in the UK’s largest cities has hit a seven-year low as a north-south divide has emerged when it comes to sales.

Data from Zoopla found that house prices in the UK’s 20 largest cities grew 1.7% annually in March to £254,600.

This is down from 2.4% in March 2018 and the lowest level since May 2012.

The slowest growth is coming from cities in the south of England, where Zoopla is also warning sales are down 13% since 2015.

Sales have fallen by 20% in Cambridge, in line with the decline in London, between 2015 and 2018, and by 12% to 13% in Portsmouth and Bournemouth.

Annual growth was at zero in London and fell 0.6% in Oxford, according to the figures.

The analysis attributed the sales decline in the south to buyers being priced out due to these areas experiencing higher price growth than the north since 2008.

In contrast, property sales increased by 6% across all cities in northern England – where price growth has been below average since 2008 – between 2015 and 2018.

Liverpool and Glasgow have registered the highest increase in sales since 2015, with transactions up by 19% and 12% respectively.

Liverpool also leads the way for house price growth, with average values up 5.7% annually.

Richard Donnell, research and insight director at Zoopla, said: “The housing cycle continues to unfold at different speeds across UK cities. London has led the overall market along with Cambridge and Oxford.

“While sales in London are down 20% on 2015 levels, prices are flat over the last 12 months.

“The signs of firmer pricing we recorded last month have continued into March with fewer London postcodes registering price falls. More realistic pricing and better value for money for potential buyers means sales volumes have stabilised.

“Cities across southern England are 18-24 months behind London. House prices have increased significantly ahead of earnings in recent years, causing the rate of price growth to now slow due to weaker demand and lower sales volumes.

“Price growth is set to remain weak as affordability levels start to realign with what buyers are prepared to spend.

“House prices and sales volumes continue to increase in regional cities outside southern England. Prices in these cities have recorded modest gains over the course of the last decade and affordability remains attractive.

“As employment levels and incomes rise, households have the confidence to bid up the cost of housing, with four cities registering price growth of 5% or more per annum.”