Sheffield house price rise ‘accelerating’

House prices are increasing in Sheffield
House prices are increasing in Sheffield
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Sheffield house prices rose 6.2 per cent in the last year - but are still well below their 2007 peak, new research has found.

Residential analyst Hometrack said the average house price in the city is now £125,400.

Annual price rises have been accelerating in the city - up from 5.2 per cent in June 2014 to 6.2 per cent in December.

But houses are still an average 5.9 per cent cheaper than they were in 2007 prior to the global financial crash. The average UK house price is £185,800 - 8.3 per cent more expensive than a year ago and 1.1 per cent higher than in 2007.

Hometrack say that across the country there are now two distinct groups of cities – those like Sheffield, Glasgow and Manchester that are accelerating off a low base after years of either static or falling prices and those like London and Oxford which have enjoyed strong house price recovery over the last two years and where house prices are starting to slow on cooling demand and affordability constraints.

Richard Donnell, director of research at Hometrack, said: “Pent-up demand has fed back into the market in the last two years, supported by record low mortgage rates, but mortgage approvals have weakened in the last five months with a knock on impact on growth.”

He said greater mortgage regulation and the willingness of households to borrow cash will influence the market this year.