A new report predicts house price growth outside London to overtake that of Prime Central London: a 7.5% rise is forecast for the country in 2014, compared to 6.5% in Prime Central London (PCL), according to Strutt & Parker.
The agent also expects price rises across the country of 5.5% in 2015, to be larger than those in London, which are forecast at just 2.0% as the General Election approaches. These numbers sit in stark contrast to 2010 and 2011 when Prime Cental 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%. Increases were also seen in the East (5.0%), the North West and Yorkshire & The Humber (both 4.0%), the South West (3.8%) and the West Midlands (3.5%) in the same timeframe. The only place in the country not to see any growth was Wales, the agent has reported.
Meanwhile, Scotland has seen the strongest increases in volume and values compared to the three year average – and whilst the looming independence referendum has perhaps slowed the £1m plus market, the £250,000 – £850,000 market has seen a return of consumer confidence and while the interest rates remain low, it seems buyers are taking advantage where they can.
Michael Fiddes, Partner and Head of Regional Residential Agency at Strutt & Parker, said: ‘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. 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.’
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