The latest published index figures show that the annual rate of house growth in key UK cities is beginning to slow down after a year of successive price rises.

However, there is evidence of variation between regions with house prices in major regional cities outside of the south of England showing continued growth, while those in the capital have seen a slowdown in the market, according to the Hometrack cities index.

House price growth outside of the south has remained steady with a 7% to 8% per year, with no indication of a slowdown to come. There has also been a slower rate of price falls in Aberdeen in comparison with recent months with an 8% decline compared to the previous month’s figure of 10%.

City house prices increased by 9.5% overall year on year in July, which was a decrease from 9.9% in June, with the strongest growth rate seen in Bristol in the south west which was 14%, closely followed by London at 11.7%. While quarter on quarter the highest growth was in lower value, higher yielding cities where prices are rising off a lower base such as Glasgow, up 5.2%, Liverpool up 4.4% and Manchester and Nottingham both up 3.4%.

Despite having the second largest yearly price growth, London has registered a marked slowdown in house price growth over the last three months. Average growth in the last quarter was 2.1%, the lowest rate for almost a year and a half.

The report states: “We continue to believe that turnover will register the brunt of the slowdown in London. In the face of lower sales volumes agents will look to re-price stock in line with what buyers are prepared, and can afford, to pay.

“Past experience shows that this process can run for as long as six months and relies, in part, in how quickly sellers are willing to adjust to what buyers are prepared to pay.”