Portsmouth bucks house price growth trend as other UK cities ‘outstripping’ increases in surrounding areas

In most areas, cities have driven house price growth this year.

Since the start of 2022, as people have gradually returned to the office, property prices across Britain’s cities have typically grown by 9.2 per cent, according to Halifax research.

This is compared with 7.9 per cent growth on average in the local authority areas surrounding cities.

In Portsmouth, average house prices rose from £225,696 to £242,945, a rise of 7.6 per cent, with a 10.4 per cent increase in nearby areas.

Andrew Asaam, mortgages director at Halifax, said a trend of people looking for greener spaces to move to, which was seen early on in the coronavirus pandemic, had remained.

He said: ‘That trend didn’t disappear completely this year, as house price growth in these areas remained strong.

‘But as daily life started to get back to normal for many, the opportunity to live in cities became more attractive again, driving up demand.

‘There’s evidence of this in locations across the country, with property price inflation in the majority of cities outstripping increases in their surrounding areas.

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‘Clearly the economic environment has changed considerably in the last few months, with the likelihood of more significant downward pressure on house prices, as the cost-of-living squeeze and higher borrowing costs limit demand.

‘The extent to which such trends will continue to shape the housing market is therefore uncertain.’

Cities highlighting the national trend include Edinburgh, where city prices have rose by 12.9 per cent – £245,107 to £276,831 – compared to 6.1 per cent in nearby areas.