London has fallen out of the top 50 global cities for house price growth

Emma Haslett
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Bristol's Booming Economy
Bristol beat London, with 10.1 per cent growth (Source: Getty)

London house price growth is now so slow, it has fallen to 55th place in a ranking of the 150 global cities with the fastest house price growth.

Knight Frank's Global Residential Cities index ranked the capital below three regional UK cities in the final quarter of last year: Bristol, which came 38th in the world, with year-on-year house price growth of 10.1 per cent; Manchester, at number 51, with growth of 7.9 per cent, and Birmingham, at number 53, with growth of 7.7 per cent.

But with house price growth of just 7.5 per cent, London only managed 55th position.

It's a major fall for the capital, which was ranked 36th in the third quarter of 2016, with 9.2 per cent growth (although admittedly that was still below Bristol, which came in at number 20, with 15.8 per cent growth).

In the first three months of last year, London had the 14th fastest house price growth in the world, at 15.2 per cent.

Meanwhile, Chinese cities took up nine of the top 10 places in the final three months of the year, with Wellington, in New Zealand, taking 10th place.

It wasn't all good news for homeowners in UK cities: both Edinburgh and Aberdeen were listed as having falling house prices, with prices dropping 0.6 per cent and 9.8 per cent respectively.

Last week figures suggested falling prices in the capital had caused housebuilding to grind to a halt, with construction falling 75 per cent in the final quarter of 2016.

Research published earlier this month showed UK house price growth had nearly halved in a year, with prices in the UK rising just 5.1 per cent in the three months to February, the lowest annual rate since July 2013.

Ranking City Year-on-year growth Ranking Q3 2016 Ranking Q1 2016
38 Bristol 10.1% 20 16
51 Manchester 7.9% 53 60
53 Birmingham 7.7% 56 43
55 London 7.5% 36 14
58 Nottingham 6.9% 64 71
86 Glasgow 4.4% 78 84
126 Edinburgh -0.6% 109 132
148 Aberdeen -9.8% 150 150