Prime Regional Properties Sustain Growth

The latest data from international real estate adviser Savills has revealed that prime regional housing markets have sustained positive growth year on year and since December 2014’s autumn statement.

This is in contrast to the results of prime London which has suffered a significant impact from the increase on stamp duty rates on high value properties, however the economic uncertainty prior to the EU referendum all but stalled price growth in all regions in the second quarter of this year.

In terms of regions, the outer commuting zone of London, areas around 30-60 minutes from the centre of the capital, have stayed at the strongest level, rising by 3.5% on last year and 0.8% in the quarter.

In comparison, London’s prime suburban markets fell by 0.4% in the period between April and June.

Associate Director of Savills research team, Sophie Chick, said: “Prime regional markets are at a different stage in their cycle, having been slower to recover since the 2007 peak, and therefore appear to have been slightly less affected by pre referendum uncertainty.”

However, she added that while prime regional markets are still offering more value in comparison to London, the numbers indicate that the ripple in growth of house prices away from the capital was put on hold prior to the Brexit vote.

Larger properties are also being outperformed by smaller, lower value properties and across the index, homes priced below £500,000 saw the strongest growth, up by 4.6% annually and up by 0.9% from April to June.

Properties valued above £2 million saw a fall in value of 0.2% in the quarter, with prices over the past year remaining fairly flat (up 0.6%).

Cottages also saw a similar growth in price of 3.7% annually and 0.9% in the quarter, in comparison with country houses which fell by 0.6% over the last year.


Latest Issue

BDC 309 : Oct 2023