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The housing market has bounced back spectacularly over the last month. Buyer demand is up and house price growth is at a two year high. But what does that mean for house price inflation in cities across the UK?
Zoopla’s house price index, released today, revealed the UK cities they predict will experience the largest house price growth in 2020, and Nottingham topped the list.
House price inflation
Zoopla ranked the UK cities on which had the best prospects for house price inflation in 2020. Housing affordability, the position of each city in the current housing cycle, discounts to asking prices and time to sell were all factored in.
House price inflation in Nottingham is currently running at 5.2 per cent. The city was found to have the strongest prospects for a continued rise in house prices.
In other words, buying in Nottingham is a pretty safe bet if you’re looking to invest in property. Especially with the average house price currently sitting at £159,600.
Edinburgh came in second. The average house price already sits at £242,200, but the city has seen house prices rise by 6.1 per cent in the last year. So it’s safe to assume we can expect big things from house prices in the city in 2020.
Cities in the north of the UK dominated the top 10, while those in the south of England are expected to see dips in house price growth. That includes the stereotypically expensive cities of Southhampton, Oxford and London.
Zoopla suggests this limitation on house price growth is linked to the affordability of housing in the areas.
‘Regional cities continue to lead the way for house price inflation this year thanks to continued economic growth and more attractive affordability of housing,’ explains Richard Donnel, research and insight director at Zoopla.
‘The best prospects for house price growth in 2020 are in Nottingham, Edinburgh, Glasgow and Manchester,’ he adds. ‘In contrast, we expect cities in southern England to register below-average price growth as affordability levels realign to what buyers can afford.’
Overall, it is good news for homeowners as house prices are expected to grow on average by 3 per cent across the UK.