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Prime Property Grows Faster in the Regions than in London in Q1

Prime property values in the UK’s regions outperformed the London market for the first time, according to a new report.

Prime Regional Property Prices Increase

Prime property values in the UK’s regions outperformed the London market for the first time, according to a new report.

Research from Savills found that across prime properties, defined as being those in the top 5-10% of all properties in the housing market, regional locations across England all experienced an increase in value of at least 0.9%.


London’s suburbs had the lowest growth with 0.9%, whilst the inner commuter belt (those locations within a 30 minute commute of Central London), the South, the Midlands and the North were all subject to a 1.4% increase in property values.


The biggest rise in property value was found in the Outer Commuter belt, those locations where London is accessible in 31-60 minutes, where house prices increased by 1.6%.


Elsewhere in the UK, Scotland saw prime property values grow by 0.3% according to the report.


All of these locations surpassed the performance of prime London properties, which saw a decrease in value of 0.3% across Q1 as purchasers looked towards the regions for greater value for money.


Commenting on the findings, the head of residential research at Savills, Lucian Cook, said: ‘Previously buyers have been reluctant to trade out of the London market given the extent to which its value has been rising. This is now much less of a concern.’


As purchasers begin to explore the regions for prime properties, the movement of capital from London has been felt. In 2015, Londoners were responsible for 23% of the prime purchases made in suburban and commuter areas. This year, that figure has risen to 30%.


Whilst interest in prime property investments in the capital has waned in the face of the new Stamp Duty levy, new transport links such as Crossrail are maintaining the growth typical of London properties, with prices rising by as much as 65% along the new route.

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