Soaring London prices push buyers outside to South East
The South East overtook London as the country’s fastest rising market, according to online property tracker Rightmove, as the average UK house price rose by 2.6% month-on-month in October, to reach £271,669.
The rise continues the typical seasonal trend of a strong uplift in new sellers' price expectations come October. While that marks the smallest increase in six years "there appear to be few signs of a slowing market in the South East.
As a whole, city house prices increased by 9.6% year-on-year but in the South East they increased by 10%.
Nevertheless, London did see a massive change of pace, with prices rising 7% on the month, to £596,692, thus reversing the declining trend observed over the previous four months.
According to Rightmove’s director and housing analyst Miles Shipside, “London’s boom in property prices has meant areas further out are now looking much more attractive in comparison.”
“The ripple effect of buyers priced out of London, combined with those cashing in and moving out of the capital, means that the South East has taken London’s boom-town crown.”
Rather than perceiving the above data as signifying the return of the London boom, Shipside remarked that high-end property owners have simply returned to the market after the summer lull.
He added: “The three highest priced boroughs all see substantial October increases for example.”
“Prices have effectively stood still over the last four months, an indication of the slowing market in some parts of the capital.”