HOUSE prices in Portsmouth have increased in the last three months, research has shown.
Property analyst Hometrack has reported that the average price of a property in Portsmouth is £195,200, up 8.8 per cent in the three months to November.
That’s an average cash increase of £15,900.
London property prices increased by 0.5 per cent in the three months to November, slowing from average quarterly increases of 1.4 per cent seen in the capital over the last year.
Richard Donnell is the research director at Hometrack. He said the slowdown in London will act as a drag on the rate of house price growth across the UK over the next year.
He said: ‘The rate of growth in house prices is starting to lose momentum across other cities in southern England while across the rest of the country modest levels of house price appreciation continue as prices rise off a low base.’
Mr Donnell said that, overall, he expects property values to increase at a rate which is more in line with earnings growth next year.
And he said a two per cent house price increase is pencilled in for the whole of 2015 across the UK.
He said that stricter mortgage lending rules which came into force in April and force mortgage applicants to produce stronger evidence about their spending habits in order to make sure they truly can afford their repayments are having an impact on the pace of house price increases.
He added: ‘We would expect to see further, modest price falls in the months ahead as prices realign off a high base to what buyers are prepared to pay.’