London is now in the bottom five of the UK's largest 20 cities when it comes to house price growth, new figures have shown.
Prices in the capital have grown just 2.9 per cent in the first half of the year, putting it just ahead of Newcastle, where prices have grown 3.6 per cent, but below Glasgow, where price growth was 4.1 per cent.
Hometrack's UK Cities House Price Index shows Birmingham has the strongest price growth of any UK city, with prices rising 6.1 per cent in the first six months of the year, and 7.8 per cent year-on-year in June.
That was followed by Edinburgh, where prices rose 5.5 per cent in the first half of the year, and Manchester, with 4.7 per cent growth.
|City||Average price||Rise since last June||Growth in the first half of 2017|
|20 city index||£252,400||5.10%||5.00%|
However, the capital is still by far the most expensive place to buy a home, with an average house price of £493,000, followed by Cambridge and Oxford, where house prices are around £425,000.
Across the UK's 20 largest cities, house prices rose five per cent in the first half of the year, to £252,400.
Richard Donnell, research and insight director at Hometrack, put the 10 per cent fall in house price growth in the capital down to affordability pressures and the Brexit vote.
“Despite a material slowdown in the rate of house price growth in south eastern England, the headline rate of city house price inflation is holding up, despite the squeeze on real incomes and uncertainty around Brexit," he said.
"The Brexit impact was greatest over the second half of 2016 but house price growth has picked up over the last six months. This is consistent with an 11 per cent increase in the number of home purchase mortgages, which is also five per cent higher than the five year average."