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In no less than 22 UK cities, house prices are continuing to outperform the current rate of inflation, as the housing market stands strong despite fears of a property market dip during the closing stages of 2022.

Analysis was conducted on the city rate of inflation seen across 62 UK cities and how this compares to the strength of the housing market based on the annual rate of house price growth.

The research shows that across the UK as a whole, house prices have continued to climb by a respectable 6.3% on an annual basis. However, despite inflation peaking in recent months, it remains at a rate of 10.4%, 4.1% above the average rate of house price growth.

LIS Show – MPU

Despite topline house price growth trailing inflation a number of major UK cities are actually putting in a stronger performance, with no less than 22 of the 62 major cities analysed seeing strong rates of house price growth versus inflation.

Peterborough tops the table where inflation currently sits at 10.2 %, while house prices have climbed by 14.4% in the last year, a 4.1% difference.

In Wigan, inflation is currently at a rate of 10.7%, while house prices are up 13.9%, a difference of 3.2%.

This difference also sits at 3.0% in Derby, where house prices are up 13.9% versus a city inflation rate of 10.9%.

Other cities to make the top 10 include Norwich (2.5%), Nottingham (2.5%), Swindon (2.0%), Cambridge (1.7%), Blackburn (1.5%), Barnsley (1.3%) and Birmingham (1.2%).

In contrast, the current rate of city inflation across Aberdeen is 10.2%, while house prices are down 4.4%, resulting in a balance of -14.6%.

Adam Day, Head of eXp UK, responsible for the research, commented:

“Even in times of economic uncertainty and hardship, the UK property market provides a safe haven for many homeowners and it’s no wonder that so many of us aspire to own our own homes, as it’s one of the safest, long-term investments you can make.

In fact, while there have been many predictions of a housing market crash, this simply hasn’t come to fruition and, in fact, property values have increased annually in all but one major UK city.

What’s more, despite many households facing the toughest cost of living crisis in living memory, they can at least rest safe in the knowledge that their home is outpacing inflation when it comes to its increase in value over the last year.”

Location City inflation rate YoY – Jan 2023 Current Average House Price Annual House Price Growth (%) House Price Growth vs Inflation
Peterborough 10.2% £250,978 14.4% 4.1%
Wigan 10.7% £190,803 13.9% 3.2%
Derby 10.9% £208,750 13.9% 3.0%
Norwich 10.4% £253,264 12.9% 2.5%
Nottingham 10.9% £194,080 13.4% 2.5%
Swindon 9.8% £270,315 11.8% 2.0%
Cambridge 9.3% £528,401 11.0% 1.7%
Blackburn 11.1% £147,213 12.6% 1.5%
Barnsley 10.6% £166,908 11.9% 1.3%
Birmingham 10.8% £239,603 12.1% 1.2%
Basildon 9.8% £389,328 10.9% 1.1%
Telford 10.2% £227,381 11.1% 0.9%
Sheffield 10.7% £222,842 11.5% 0.8%
Exeter 10.6% £336,320 11.4% 0.8%
Coventry 10.7% £235,138 11.4% 0.7%
Wakefield 10.5% £200,162 11.0% 0.6%
Newport 10.3% £243,218 10.9% 0.5%
Mansfield 10.8% £181,383 11.2% 0.5%
Cardiff 10.3% £270,356 10.5% 0.3%
Liverpool 10.7% £182,625 10.9% 0.2%
Brighton 10.5% £453,911 10.7% 0.2%
Manchester 10.5% £236,511 10.5% 0.1%
Portsmouth 10.5% £258,915 10.5% 0.0%
Sunderland 10.4% £144,899 10.3% -0.1%
Doncaster 10.9% £167,835 10.6% -0.2%
York 10.3% £325,717 10.0% -0.3%
Ipswich 10.6% £241,353 10.1% -0.5%
Chatham 10.3% £308,841 9.7% -0.5%
Leicester 10.9% £235,918 10.2% -0.7%
Slough 9.9% £331,853 9.1% -0.8%
Middlesbrough 10.5% £143,359 9.6% -0.9%
Bristol 10.3% £360,121 9.4% -0.9%
Southampton 10.3% £254,557 9.3% -1.0%
Reading 9.4% £334,809 8.3% -1.0%
Huddersfield 10.8% £195,151 9.7% -1.1%
Leeds 10.6% £240,316 9.4% -1.2%
Warrington 9.9% £261,888 8.5% -1.4%
Bournemouth 10.4% £351,730 8.9% -1.5%
Birkenhead 10.8% £211,265 9.2% -1.6%
Southend 10.5% £349,828 8.8% -1.6%
Gloucester 10.6% £252,506 8.8% -1.8%
Plymouth 10.7% £225,747 8.9% -1.8%
Crawley 9.9% £333,352 8.0% -1.9%
Northampton 10.4% £301,140 8.5% -1.9%
Hull 11.2% £138,393 9.2% -2.0%
Preston 10.5% £159,602 8.5% -2.0%
Luton 10.8% £288,313 8.6% -2.2%
Aldershot 9.6% £336,100 7.3% -2.3%
Newcastle 10.4% £194,999 7.9% -2.5%
Milton Keynes 9.4% £320,005 6.9% -2.5%
Bradford 11.4% £175,598 8.7% -2.7%
Worthing 10.8% £352,400 8.0% -2.8%
Stoke 11.0% £143,993 7.5% -3.5%
Burnley 11.8% £117,241 8.0% -3.8%
Swansea 10.9% £195,138 5.6% -5.3%
Oxford 10.0% £473,028 4.2% -5.7%
London 9.3% £533,986 3.2% -6.0%
Blackpool 11.4% £135,805 4.9% -6.5%
Edinburgh 10.1% £322,220 3.6% -6.6%
Glasgow 11.4% £172,494 3.5% -8.0%
Dundee 11.3% £141,823 1.4% -9.9%
Aberdeen 10.2% £136,742 -4.4% -14.6%
United Kingdom 10.4% £289,819 6.3% -4.1%

Average house price and annual growth data sourced from Gov UK – UK House Price Index (Jan 23 – latest available)
City inflation rates sourced from the Centre for Cities
Wider UK rate of inflation sourced from the Bank of England

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