Buyers forced out of London by spiralling property prices have helped fuel a 10% annual rise in asking prices in the south-east – a rate that has now outstripped inflation in the capital.
Asking prices in the south-east are 10% higher than they were a year ago compared with a rise of 9.6% in London. This makes the region the strongest performing in the country over the last 12 months.
“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,” said Miles Shipside, a director at Rightmove.
Rightmove forecast that the south-east would be the region with the highest increase in property values in the next five years. The report predicted that Southampton would see the fastest increases in the country over the next five years, with values expected to jump 43% by 2019, adding nearly £100,000 to local prices.
Despite the bullish longer term forecast, it conceded that overall house price inflation was slowing. The 2.6% national monthly asking price increase this month is the lowest October rise for six years.
Shipside said: “Sellers may still find that their asking prices are too optimistic in parts of the country where the supply of property exceeds buyer demand”.
The rental market also appears to be slowing, with the monthly price paid by tenants falling in eight regions of the UK in September, according to the tenant referencing agency HomeLet.
Brighton by Berit Watkin is licensed and edited under creative commons