Bristol has the fastest growing house prices in the UK for the second year in a row, latest figures reveal.

According to the Hometrack UK Cities House Price Index, property shot up a whopping 9.6 per cent in Bristol in 2016 beating the likes of London, Oxford and Manchester.

It is the second consecutive year the city has topped the list, although the growth is slowing down and has dropped from an 11.6 per cent peak in 2015.

The average home in Bristol is now sold for £261,600 on the open market, meaning that hopeful homeowners need to put forward a princely £26,160 for a ten per cent deposit.

In contrast to the escalating housing market, the average wages in Bristol remain stagnate at £28,360 while the cost of living continues to rise.

The annual Hometrack index compares house prices in 20 major cities across the UK.

The data provides a reflection of market trends, but it can also be one of the factors which influence growth and investment in an area.

Property in Bristol has been on the rise for the past decade, but the index compilers believe that growth will trail off in the coming years, with house prices reaching a plateau.

This is in part due to a greater push for affordable homes and new developments.

A Hometrack spokesperson said: "The headline rate of growth masks a clear shift in underlying growth at a city level.

"The impetus for growth is shifting from London to regional cities with more attractive affordability and headroom for further price inflation."

Overall house prices increased by an average of 7.2 per cent across the UK last year, down 0.5 per cent on 2015.

London dropped down to seventh in the table for property growth, with Manchester, Oxford and Portsmouth taking second to fourth spots respectively.

However, average property prices still appear to be subject to the classic north-south divide.

image: http://www.bristolpost.co.uk/images/localworld/ugc-images/276268/binaries/Housing%20sjdbasjda.jpg

Last year homes sold for an average of £484,800 in the capital compared to £151,200 in Manchester.

The Hometrack spokesperson added: "Growth over 2016 was down slightly compared to 2015 but in line with the average rate over the last 18 months.

"Falling unemployment and rising earnings continue to stimulate demand in more affordable housing markets where buyers are using low mortgage rates to bid up the cost of housing.

"Weakening demand and record high unaffordability explain London dropping to seventh in the house price growth rankings for 2016. Growth [in the capital is] projected to slow to one per cent over 2017."