House prices increased by 4.3% in the three months to July 2015 as the UK property prices saw the highest quarterly growth for eleven years, housing analyst Hometrack’s latest index has revealed.
The UK Cities House Price Index found that house price inflation in 20 cities reached 8.5% in July, up from 7.2% in April.
Transaction volumes have increased by 32% since April and mortgage lending for home purchases has risen by 26% during the same period.
Of the 20 cities researched by Hometrack, Cambridge recorded the highest annual growth of 10.9%, followed by Oxford, London and Bristol.
The lowest figure was recorded in Aberdeen at -0.7%.
Nine of the twenty cities still have average prices that are lower than 2007 levels, although Hometrack says this gap is narrowing rapidly.
“There remains further upside for city level house prices over the remainder of 2015. Low mortgage rates, economic growth and rising earnings will continue to stimulate demand and put an upward pressure on prices.
“As an international city, London is out on its own setting new highs for prices and affordability. How long this can be sustained is down to the prospects for the different segments of demand, specifically international buyers, domestic investors and domestic home owners.”