Cambridge sees largest house price rise

House prices up

House prices in Cambridge soared by 32.5% in the last seven years - more than any other city or town in the UK, new research has revealed.

Hometrack's UK Cities House Price Index found the town was one of eight locations in the UK where house prices are higher than the 2007 peak, with the average price there now standing at £348,300.

In the last 12 months alone prices have risen by an average of £53,000 in the university city - a figure beaten only by London property, which saw an average increase of £60,000 since 2013.

The capital has seen a 29% increase since the 2007 peak with an average property now costing £398,700. The only other cities to have seen prices return to pre-crisis levels are Oxford, Bristol, Portsmouth, Southampton and Bournemouth, while Aberdeen is the only city outside of the south east to see prices rise above 2007 levels.

Overall, UK average prices have risen by £15,300 (9%) in the past 12 months, with the average price now standing at £184,580. Glasgow and Leicester recorded the lowest growth in the past year, with 4.3% (£109,200) and 4.8% respectively (£141,400).

Despite the rises, Hometrack said there were signs the housing market was beginning to cool, with the annual rate of growth in September increasing by just 0.1% to 9% from August, reflecting on a weaker demand amongst buyers.

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Richard Donnell, research director, Hometrack, said: "Local economies drive their local housing markets. Cities are the focus for employment and business growth, which in turn creates demand for housing. By focusing on cities, we can get a more accurate picture of the health of the housing market.  

"Expectations that strong house price growth in the south of England would ripple out across the country were over-done. While house price growth has increased across all cities in the last year the rate of growth in the majority of cities is below the UK average. There is little evidence of a runaway surge in prices and the rate of growth appears to be moderating.

"On a national level, the overall rate of UK house price growth has been significantly enhanced by London, so we are starting to see a corresponding dip in the rate of growth in the national figures as the rate of growth slows in London."

Hometrack's research looked at 20 cities across the UK.