Oxford house prices remain subdued

House price growth in key British cities has fallen from 7.4% in July 2016 to 5.3% but some locations continue to see above average prices rises, the latest index shows.

Oxford prices achieved year on year (YOY) growth of just 1.2% in July, and are marginally down overall over the last quarter (-0.1%).

The biggest annual growth was in Birmingham with a rise of 8%, followed by Manchester up 7.1%, Nottingham up 6.0% and Southampton up 6.5%, according to the data from Hometrack.

In Aberdeen, the market has not recovered from a downturn due to falling oil prices and the city has seen negative growth for two years. Prices are 16% lower than they were in 2014 while year on year they are down 3% and month on month down 0.3%.

In London house price deflation has bottomed out with an increase in the annual rate of growth to 2.8% and month on month growth of 0.9%.  With Oxford increasingly mirroring the capital, albeit with a delay of 6 to 9 months, the slight recovery in London prices is to be welcomed, and may point to Oxford avoiding falling into negative territory YoY.

The index confirms that pressure on prices is greatest in the most expensive parts of London where demand has been weaker since the end of 2014. These inner London markets are registering small year on year price falls of up to 2%. The downward pricing pressure is less evident in the lowest value markets of London which have registered above average growth and price inflation of over 3%.

Looking ahead, the report says that there remains a clear divide between the prospects for house price growth in regional cities, where affordability levels are attractive, and the prospects for house price growth in London and other high value cities in southern England such as Oxford.

‘We expect house price growth in regional cities to be sustained at current levels for the rest of 2017. London is set for a sustained period of low nominal house price growth and lower sales volumes,’ it adds.