Prime London property market's growth a blueprint for the whole UK

Prime London property market's growth a blueprint for the whole UK

Consistent growth has been a feature common in London's prime central property market across the last few years, and now it seems that it is starting to influence the situation seen across the rest of the UK, with the sort of price increase seen in the capital now spreading further afield.

According to the latest report that has been published by Savills, the prime property market across the UK as a whole has witnessed increasing prices 5.7 per cent in the year to the end of June.

Prices also grew by 3.1 per cent in the prime market across the first six months of 2014. It means that the prime market UK-wide has now witnessed growth for four consecutive quarters, showing a real level of strength that is more commonly associated with London than the regions. 

"There is now clear evidence that the recovery is taking hold across the UK more widely, with a return to former 2007 peak values still a useful benchmark of that recovery," said Lucian Cook, Savills UK head of residential research.

However, while places further north are finally starting to see a level of consistency in line with the capital, it is still areas around London that are performing best, with the report showing that commuter belt areas are starting to become more popular with buyers.

It could be evidence that people in the capital are starting to feel more confident about their finances, and are subsequently moving away from their smaller homes in the city to purchase expensive properties in commuter-friendly regions around the south of England.

And Savills seems to show that this is true, with prime suburbs having outperformed the capital for the first time since the credit crunch. Prime properties in these areas have risen by some 5.7 per cent in price since the turn of the year. By way of comparison, London properties have grown in value by just 4.9 per cent in the same time.

"The prime market is responding to the positive sentiment in the mainstream market, with stock levels increasing as downsizers in particular sense an opportunity to sell into a more buoyant market," Mr Cook concluded.