House price growth is driving up prosperity outside London - here are the cities that beat the capital

 
Helen Cahill
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The Famous University Town Of Cambridge
House price growth in Cambridge outstripped London's growth over the last year (Source: Getty)

London remains the most prosperous city in the UK - but rising house prices are creating wealth hot-spots in areas outside the capital.


House prices have grown faster in both Bristol and Cambridge, up by 14 per cent and 13 per cent respectively over the past year, according to Barclays. In London, prices have increased by 11 per cent - but the capital still tops Barclays' Prosperity index.

An increase in entrepreneurs beyond the South East has also helped drive prosperity over the UK; in Manchester, the turnover of small and medium enterprises (SMEs) has increased by 15 per cent. In Cardiff and Sheffield, SME turnover reached 12 per cent and 11 per cent respectively.

Growth in household wealth in Scotland was greater than in London. Wealth increased by 13 per cent in Scotland over the past year, as compared to a 12 per cent increase in London and an 11 per cent increase in the South East.


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Barclays said the increase in household wealth was likely due to private pensions wealth growth in Scotland, where the median was up by 60 per cent; in England, the median increased by just 19 per cent.

Akshaya Bhargava, head of Barclays' wealth division, said: "It is very encouraging to see the upward trajectory for prosperity in the UK continuing despite recent global volatility - both in terms of hard economic measures, as well as more behavioural aspects of prosperity, such as exam results or philanthropic giving.

"As we look at the future of global trade and inward investment post-Brexit it is the success of our entrepreneurs that will help drive future prosperity."

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