Prices will rise by 7.5% compared to 6.5% in the prime central London market, according to the latest quarterly report from national estate agent Strutt & Parker.
The report also predicts that price will rise 5.5% across the country in 2015 but just 2% in London. These forecasts are a stark contrast to 2010 and 2011 when prime central London prices surged by over 13% year on year.
The median house price in the South East has risen sharply to £240,000 over the past year, an increase of 6.7%.
The East if the country saw prices rise by 5% while the North West and Yorkshire and Humber saw growth of 4%, the South West growth of 3.8% and the West Midlands 3.5%. The only place in the country not to see any growth was Wales.
‘The median house price for England and Wales has seen a 4.2% increase to £186,000 compared to the first quarter of 2013 and in Greater London the median price has increased by 15% compared to a year ago and is now at £345,000,’ said Stephanie McMahon, head of research at Strutt & Parker.
Scotland has seen the strongest increases in volume and values compared to the three year average with the median house price up by 3.1% since the fourth quarter of 2012 at £159,670. Whilst the looming Scottish referendum has perhaps slowed the £1 million plus market, the £250,000 to £850,000 market has seen a return of consumer confidence. While the interest rates remain low, buyers are taking advantage where they can.
The report also highlights some behavioural changes in the UK housing market. Whilst the majority of buyers in the country purchase property for their primary home, Strutt & Parker has seen a recent increase in people outside London buying for investment purposes, rather than secondary homes.
The difference between the prime central London market and the rest of the UK is also apparent. In prime central London nearly 46% of buyers come from somewhere outside the UK, however, that figure declines to almost 6% for Strutt & Parker’s offices outside London.
‘In the first quarter of 2014, for the first time in a number of years, we have seen an outward flow from London into the South East and further afield,’ said Michael Fiddes, partner and the firm’s head of regional residential agency.
‘Such activity has been reflected in the relative increases in value, and perhaps a recognition that the disparity between London and the regions has peaked,’ he added.
