House prices across England’s major cities ‘surpass pre-crisis peaks’

House prices across all major cities in England covered by an index are now above their 2007 pre-financial crisis peaks for the first time.

Zoopla, which tracks price movements across the UK’s 20 biggest cities, said Newcastle was the final city in its index to reach the milestone, 12 years later.

Average property values in Newcastle passed the mark in late December, it said. The average house price in Newcastle in January was £129,700 – 1% above 2007 levels.

By contrast, prices in central London took just two and a half years to rebound, it said.

The report said the rapid turnaround was due to overseas buyers entering the market after a major fall in the value of sterling made housing appear better value to dollar-backed purchasers.

In Oxford and Cambridge, property values surpassed their pre-crisis peaks within four years, while in Bristol it took just over five years.

As the housing market recovery spread towards the Midlands and northern England, property values had rebounded in Nottingham and Leicester around seven and a half years after the crisis, while in Birmingham and Manchester it took around eight years.

In Leeds and Sheffield it took just under nine years for prices to recover while in Liverpoool it took just under 12 years.

Richard Donnell, research and insight director at Zoopla, said: “It has taken 12 years for house prices in all English cities to return to their previous pre-crisis levels.

“Some cities returned to 2007 levels within four years, as the economy and job growth rebounded. In others, it has taken much longer as the mismatch between demand and supply has been less pronounced.”

Average house prices in January in cities covered by Zoopla’s index, and the increase or decrease since October 2007:

– Edinburgh, £242,000, 21%
– Nottingham, £160,200, 27%
– Leicester, £182,600, 33%
– Birmingham, £168,700, 26%
– Liverpool, £122,900, 1%
– Manchester, £173,600, 24%
– Cardiff, £212,600, 24%
– Bristol, £286,300, 46%
– Leeds, £169,200, 14%
– Bournemouth, £290,700, 29%
– Cambridge, £415,300, 53%
– Oxford, £423,900, 50%
– Sheffield, £139,500, 12%
– Newcastle, £129,700, 1%
– Portsmouth, £241,100, 31%
– Glasgow £123,100, 3%
– London, £481,800, 59%
– Belfast £136,600, minus 38%
– Southampton, £228,500, 25%
– Aberdeen, £153,500, minus 10%