With 26 towns applying for city status as part of this year's Diamond Jubilee celebrations, Halifax has looked back at how house prices in cities have performed over the past 25 years.
House prices in cities have risen by an average of 382% over the past quarter of a century from £35,209 in 1986 to £169,707 in 2011. This exceeds the increase of 347% for the UK as a whole over the period. Truro (550%), Westminster (522%) and Edinburgh (509%) are the three cities that have recorded the biggest price rises since 1986.

Martin Ellis, housing economist at Halifax, commented:
"Cities have typically seen higher house price growth than the UK average over the past 25 years. The majority of cities have also outperformed their region. City house prices are generally supported by demand from those looking to gain from the economic and lifestyle benefits often associated with residing in major urban areas.

The experience of towns that have been made cities during the past quarter of a century has been mixed. Some have gone on to outperform their region after gaining city status whereas they had underperformed previously. This, however, has not always been the case. There are, therefore, no guarantees for homeowners in whichever town is awarded city status this year that they will see a benefit in the form of improved house price performance."

(source : Halifax)