In particular demand for properties in key town and city locations such as Oxford, Bath, Bristol and Cheltenham with access to good schools, transport links and amenities is expected to be high.
They are attractive to buyers from London, including commuters, as infrastructure improvements make them and their amenities more accessible, according to the research from real estate firm Knight Frank.
These include the electrification of the Great Western rail line to London from Bristol and Bath and the new Oxford Parkway railway station just opened to the north of the city.
Annual price growth for prime properties in the Oxford city market eased to 1.3% in 2015, but the research suggests that as Oxford’s economy is diverse, led by IT, high tech manufacturing and publishing and the city’s hospitals and two universities are major employers, demand from local buyers is ever present.
‘Activity is expected to remain strong in early 2016, especially as some buyers look to complete purchases ahead of the introduction of new stamp duty rules which have the potential to impact a small section of the market,’ the report says.
The report points out that annual price growth for prime properties in the Bath city market was 4.5% in 2015, compared to a 3.1% rise across the wider prime country market and this outperformance reflects the continued demand among buyers for prime properties in city centre locations.
Bath is an international tourist destination home to a wealth of museums, Georgian streets and other attractions that mark it out as a desirable place to live and visit, including a compact city centre with a good retail offering.
This was underlined by a 6% rise in the number of potential buyers registering their interest in purchasing a home in Bath through Knight Frank year on year, a 15% jump in sales volumes over the same period and a 43% increase in the number of people searching for homes in Bath on Knight Frank’s website.
A number of these individuals were relocating or looking to relocate from the capital. Knight Frank data shows that outside of the Home Counties, Bath along with Oxford was the most popular location for Londoners looking to move in 2015.
‘The prospect of more regular services between Bath and London from 2017 as a result of improvements being made to both the track and the trains will make commuting an even more viable option,’ the report explains.
Property prices in Bristol rose by 6.6% in 2015 driven by the growing trend among buyers for properties in key town and city markets with access to good schools, transport links and amenities and a lack of available properties for sale has been the biggest driver of the market in Bristol over the last year, according to the report.
Stock levels were at their lowest level all year in December, some 38% below the corresponding point in 2014 according to Knight Frank figures and demand among prospective buyers remains high with well-located properties in good condition attracting interest.
Properties in Stoke Bishop recorded the biggest price growth in 2015 at 9.7% on average, followed by homes in Redland and nearby Clifton where values rose by 8.5% and 8.4% respectively.
‘Such strong growth reflects the growing trend among buyers for property in urban locations close to good schools, transport links and amenities. Bristol is particularly well placed to take advantage of this with a number of top performing schools including Clifton College and Bristol Grammar School located in the city,’ the report says.
‘It is also well connected to London and other major UK cities by road, rail, sea and air. Furthermore, price growth over the last year is an indication that both buyers and sellers at the top end of the market are adjusting to the stamp duty changes introduced by the Chancellor in the 2014 Autumn Statement, with higher transactional costs increasingly being factored into pricing,’ it adds.
The number of prospective buyers registering with the Knight Frank Bristol office with a London address increased by 5% year on year in 2015 and was significantly higher than in 2013. One possible reason for this rise is the potential for a reduction in journey times between Bristol and London as a result of improvements being made to the rail line and trains.
Last year in Cheltenham the prime market has been buoyed by the fact that activity remained robust throughout the year and was less tied to seasonal patterns than it has been in the past and Knight Frank sales data shows that the number of deals completed between October and December was more than 50% higher year on year. This contributed to price growth of 2% in the fourth quarter.
The report points out that plans are in place to increase the frequency of the train service and cut journey times between Cheltenham and London, which will make commuting an even more viable option.
‘Cheltenham’s strong track record of house price growth and the appeal and convenience of town and city centre living make it well positioned to benefit again this year. Indeed, the market is expected to be especially busy during the first three months of the year as some buyers look to complete purchases ahead of the introduction of new stamp duty rules in April,’ the report says.
