Regional cities house price growth outstrips central London

A dozen UK cities in a regional house price index have shown higher growth than central London, underlining the relatively sluggish performance in parts of the capital in recent months.

According to the index from Hometrack, house prices in Glasgow rose by 7.6 per cent year-on-year in the first quarter of 2015, by 6.8 per cent in Manchester and by 6.6 per cent in Leeds - against a sluggish 3 per cent in central London.

The low growth in London was concentrated in central boroughs such as Kensington & Chelsea, which saw growth of 3.4 per cent over the period. However Greater London registered a rise of 11.8 per cent, driven by double-digit growth in poorer boroughs including Newham and Barking & Dagenham.

Belfast, Cambridge and Aberdeen showed the weakest performance over the quarter, dropping 0.3 per cent, 1.2 per cent and 2.7 per cent respectively.

The 20 cities in Hometrack regional house price index account for less than 5 per cent of the UK's land area but over 40 per cent of the value of its housing.

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