In Cambridge prices rose by 15.8% in the year to April, followed by London (14.4%) and Bristol (13.8%).
Cambridge is the fastest growing city in terms of house prices, the Hometrack UK Cities House Price Index has revealed.
In Cambridge prices rose by 15.8% in the year to April, followed by London (14.4%) and Bristol (13.8%).
Average growth in the top 20 UK cities stands at 10.4%, up from 6.6% the year before.
Richard Donnell, insight director at Hometrack, looked ahead to the EU referendum on 23 June.
He said: “The economic impacts of a vote to leave will dictate the impact in the housing market.
“Our analysis of how the market has responded to external factors over the last 20 year suggests that a vote to leave on 23 June could result in a 5% to 10% fall in housing turnover with London bearing the brunt.
“After a period of strong house price inflation over the last 5 years, the London market faces greater headwinds irrespective of the referendum vote.
“Turnover fell 7% last year on the back of affordability constraints and weaker overseas demand. Tax changes for investors will reduce demand and we expect price growth to slow in the near future even if sterling were to weaken and improve the relative value of central London property.”
He added: “A vote to remain will have the greatest upside for house prices and transactions in regional cities where the recovery has been more short-lived and affordability less stretched than in southern cities.
“The boost to confidence from a vote to remain, coupled with low mortgage rates would most likely benefit cities such as Manchester, Leeds and Birmingham as housing demand and price growth seems set to sustain itself.”
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Yet again house prices have continued to rise well above the rate of wage inflation as more and more potential borrowers find themselves priced out of the competitive housing market.
“Interestingly, prices are up significantly annually 10.4% this year compared to 6.6% in 2015 when growing uncertainty over the General Election meant growth slowed temporarily.
“It won’t be surprising if we start to see a more sceptical housing market as the referendum decision grows ever closer. Events like these, where the outcome is unknown, breed uncertainty in the market, as borrowers tend to take stock before making any big decisions.”
