THE price of houses in leading UK cities has shot up, figures reveal.

In the year to August 2017, this growth hit 4.9 per cent nationally, according to data from real-estate company Hometrack.

Manchester was found to be the fastest-growing city with annual price growth of 7.3 per cent, while London has the slowest annual growth at 1.9 per cent.

Other cities showing strong price growth include Birmingham up 6.7 per cent and Edinburgh, also up 6.7 per cent.

The study also shows that the total value of all private homes across the 20 cities covered exceeds £3 trillion, of which two thirds is in London.

High capital value cities such as Cambridge and Oxford have registered a steep slowdown in the rate of price inflation over the last 12 months as affordability pressures constrain housing demand.

The figures are likely to be useful for buy-to-let investors, with evidence suggesting they are moving north in search of higher yields.

According to Graham Davidson, managing director of buy-to-let specialist, Sequre Property Investment, investors looking to make decent returns from their assets need to head north.

“It’s clear that those who have chased capital growth for many years are now steering clear and looking up north where property is much more affordable and rental yields are significantly higher,” he said.

The report says that falling unemployment and record low mortgage rates are supporting demand, as house prices in large regional cities continue to increase off a low base.