Cities have driven house price growth this year, leaving the suburbs lagging behind.
Since the start of the year, as people have gradually returned to the office, property prices across Britain’s cities have typically grown by 9.2%, compared with 7.9% growth on average in surrounding areas, according to Halifax.
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.
“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.”
In Edinburgh, the average house price in January was £245,107, rising by 12.9% to £276,831 by September - compared to 6.1% average growth in surrounding areas.
In Glasgow, the average January price was £159,770, rising 8.5% to £173,331 in September - compared with 4.6% average growth in local authority areas that directly surround the city.
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