The growth of London house prices has slowed down, new data suggests
London house price growth has slowed in the first quarter of 2016 and is now nearly three times lower than it was in the last quarter of 2015, new research shows.
The London market recorded price growth of 1.2% in the first three months of the year while nearby regions have seen higher price growth, according to the latest UK House Market report from the Lancaster University Management School.
For example, the Outer Metropolitan area has seen price growth of 3.1%, Outer South East 2.5% and East Anglia 4.1%, the data from the report shows.
The report says that this is in line with the so-called ripple effect, suggesting that substantial house price increases in London over the last few years spread out to surrounding regions over time and have a leading effect on the UK housing market.
It suggests that the slowing growth in the London property market has coincided with two factors, possibly working in opposite directions: an increase in the uncertainty of global economic conditions, especially in the East, and the run-up to the introduction on the 01 of April of extra 3% stamp duty on additional property purchases.
The Observatory has been set up to monitor for signs of exuberance in prices in the UK regions, and releases its analysis each quarter alongside the house price data.