Edinburgh property prices rise faster than rest of UK

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Edinburgh property prices rise faster than rest of UK

House prices in Edinburgh grew faster than any other British city last year, according to a report by Zoopla into the 20 cities with the fastest growth.

Glasgow also had high growth and prices are expected to rise further this year, say experts because of a Brexit bounce based on an improving economy.

Average house prices are still falling in Aberdeen although demand for homes there is increasing, the report said. House prices in the city, which is heavily reliant on the oil and gas industry, have not recovered from the fall in oil prices in the past five years.

Nottingham is tipped to have the strongest price growth this year, followed by Edinburgh, Glasgow and Manchester.

House price growth was 6.1 per cent in Edinburgh last year and 5.2 per cent in Nottingham. In Glasgow prices rose by more than 3 per cent after several years of virtually static prices. Dundee fell outside the top 20 biggest cities category. The Zoopla report looked at a range of factors, including affordability, how much sellers needed to reduce their asking price to get a sale and how long properties were on the market for, in order to predict which cities could have the strongest prospects for house price growth in the year ahead.

Cities outside the south of England topped the rankings, largely because of their affordability, Zoopla said. Scotland benefits from being cheaper than the southeast of England.

The report also said that annual house price growth across the UK’s 20 biggest cities averaged almost 4 per cent last year, the strongest growth since September 2017.

Richard Donnell, research and insight director at Zoopla, said: “The best prospects for house price growth in 2020 are in Nottingham, Edinburgh, Glasgow and Manchester.

“In contrast, we expect cities in southern England to register below average price growth as affordability levels realign to what buyers can afford. Overall, we are expecting house prices to grow on average by 3 per cent across all UK cities in 2020.”