House prices in hotspots other than London record best performance in a decade

Last year, house prices in major UK housing markets outside London rose at the fastest rate in a decade, according to a new study.

The preferential price range represents the top 5-10 percent of the housing market by value.

Home values ​​in the UK’s main housing markets outside the capital grew 9.3% on average, according to research by real estate advisers Savills – the strongest annual growth since 2010.

The push was led by people looking to increase their size and leave cities after the lockdown.

Coastal areas such as Devon and Cornwall saw average price growth of 15.6% over the year, driven by high demand and falling supply.

Cotswold properties on the market over £ 2million also saw a dramatic increase in price growth, with values ​​rising 23.4%. It was driven by local owners looking to expand, those moving from elsewhere and aspiring second home owners, Savills said.

“In these markets, the scarcity factors: whether it is a type of property that is rarely available; the most popular locations; or simply the best view, have combined with high levels of demand and buyer wealth, to create pockets of extremely strong market conditions, “said Frances Clacy of Savills.

“The number of new buyers in the past month is 1.5 times higher than at the same time in the two years leading up to the pandemic, suggesting that these trends will continue at least early next year. . “

London’s prime housing market has not seen the same growth as those outside the capital, only London’s largest houses (six bedrooms or more) have come close. Price growth in central London averaged 2.0%, while price growth outside London averaged 3.7%.

A recent analysis by estate agent Hamptons found that London-based homebuyers bought more out-of-city properties in 2021 than in any year since 2007 (112,700 homes), first-time buyers representing 24% of this figure.

However, according to data from Savills, price growth totaled 9.1% year-on-year in major urban locations, compared to 9.4% for major markets surrounding cities such as Bath, Bristol, Cambridge, Edinburgh, Winchester and York.

“Since the summer, we have seen a return of strong demand for buyers in key locations in the city,” said Ms. Clacy.

“But the value offered in village and rural markets, due to their long-term underperformance, will continue to drive demand in these areas.”

Additional reporting by the Press Association

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