House prices forecast to continue increasing in Portsmouth

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Property values in the city increased by 7.3 per cent year-on-year in June to reach £198,500 on average.

The average increase across the major cities, including London, Glasgow and Bristol, is 8.4 per cent.

But that rate of growth looks set to increase, as a tight supply of properties for sale pushes the annual rate of price growth towards 10 per cent.

Richard Donnell, director of research at Hometrack, said: ‘Rising demand for property against a backdrop of low supply continues to push city house prices higher.

‘While house price growth might moderate slightly in the second half of the year, it looks increasingly likely that city level house price growth will return to double digits by the year end.’

Earlier this month, Bank of England governor Mark Carney suggested that interest rates could start to increase around the turn of the year.