Research from eXp UK, the network of personal estate agents, has revealed that in no less than 22 UK cities, house prices are continuing to outperform the current rate of inflation, as the housing market stands strong despite fears of a property market dip during the closing stages of 2022.
eXp analysed the city rate of inflation seen across 62 UK cities and how this compares to the strength of the housing market based on the annual rate of house price growth.
The research shows that across the UK as a whole, house prices have continued to climb by a respectable 6.3% on an annual basis. However, despite inflation peaking in recent months, it remains at a rate of 10.4%, 4.1% above the average rate of house price growth.
Despite topline house price growth trailing inflation, the research from eXp shows that a number of major UK cities are actually putting in a stronger performance, with no less than 22 of the 62 major cities analysed seeing strong rates of house price growth versus inflation.
Peterborough tops the table where inflation currently sits at 10.2 %, while house prices have climbed by 14.4% in the last year, a 4.1% difference.
In Wigan , inflation is currently at a rate of 10.7%, while house prices are up 13.9%, a difference of 3.2%. This difference also sits at 3.0% in Derby , where house prices are up 13.9% versus a city inflation rate of 10.9%.
Other cities to make the top 10 include Norwich (2.5%), Nottingham (2.5%), Swindon (2.0%), Cambridge (1.7%), Blackburn (1.5%), Barnsley (1.3%) and Birmingham (1.2%).
In contrast, the current rate of city inflation across Aberdeen is 10.2%, while house prices are down 4.4%, resulting in a balance of -14.6%.
Head of eXp UK, Adam Day, commented:
“Even in times of economic uncertainty and hardship, the UK property market provides a safe haven for many homeowners and it’s no wonder that so many of us aspire to own our own homes, as it’s one of the safest, long-term investments you can make.
In fact, while there have been many predictions of a housing market crash, this simply hasn’t come to fruition and, in fact, property values have increased annually in all but one major UK city.
What’s more, despite many households facing the toughest cost of living crisis in living memory, they can at least rest safe in the knowledge that their home is outpacing inflation when it comes to its increase in value over the last year.”
Data tablesData tables and sources can be viewed online, here.
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