House prices in the UK’s southern cities grew at their slowest rate in seven years last month, according to new data released this morning.
Average house price growth across southern cities is running at the lowest level recorded since January 2012, Zoopla has found, with values rising by just 0.7 per cent over the 12 months to June 2019.
Read more: London house prices plunge
The slight rise compares with average annual growth of 3.6 per cent in northern cities.
In London, which continues to be the most expensive city with an average house price of £484,200, growth improved from -0.5 per cent in June last year to 0.0 per cent last month.
Richard Donnell, research and insight director at Zoopla, said: “There is a clear imbalance between supply and demand for housing across southern cities and this explains why house price growth in these cities is at its lowest level since 2012.”
He added: “London has led the slowdown over the last three years, but here there are signs of greater realism on pricing from sellers and this has resulted in a small but important increase in sales. Affordability and weak market sentiment remain the main constraints on the London market.”
House price growth in southern cities ranged between two per cent in Bristol to -0.3 per cent in Cambridge.
Despite house prices continuing to register annual price falls in Cambridge for 10 out of the last 12 months, average property prices in the university city are currently the second most expensive of all 20 cities analysed, sitting at £425,800.