London house gap at 20yr high

September 25, 2015

According to Hometrack Cities House Price Index, the gap between house prices in London and other major  cities  across the UK is at its widest for 20 years, this is despite reports of a reduction in the gap between regional house prices, city level figures confirm that the slowdown in London is not happening.

Hometrack date showed homebuyers can expect to save on average £300,000 if they buy in Manchester instead of London,   the gap however  is at it’s biggest when comparing like for like between Glasgow and London where  buyers could expect 75% saving.

City level house price inflation is running at 8.3% up from 6.6% in May,  the low replacement rate of stock continues to create scarcity and helps to  sustain the upward pressure on house prices, added to that the ever lower interest rates have added to an increase in mortgage approvals for home purchase in the past six months.

Richard Donnell, Director of research at Hometrack, reportedly said: “A changing mix of buyers is compounding the scarcity of housing for sale with rising numbers of first-time buyers and investors buying property while having nothing to sell. Only a recovery in the number of moves among existing homeowners or an increase in new supply will ease the current housing scarcity – which seems unlikely in the near term.

“London’s price earnings ratio is at an all-time high, while there remains value in most other regional cities. The pricing differential with London could well assist city regions to attract new investment as the cost of housing starts to influence decision-making for both households and businesses.”

See Hometrack website for full details: https://www.hometrack.com/uk/insight/uk-cities-house-price-index/

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

Sellers of larger homes make £122.5k average capital gains, crushing the gains from flats

Sellers of detached homes made £122,500 in capital gains when selling their home over the last 18 months while flats yielded an average gain of £27,000 Sellers in England and Wales made an average gain of £72,000, a 38 per cent increase in value from when they bought the property The average seller in London…
Read More →
Breaking News

London’s second homeowners face £16,446 CGT bill

London’s second homeowners face £16,446 capital gains tax bill, but prime London sellers escaping unscathed The latest research from Enness Global has found that whilst the London property market remains subdued, the city’s second homeowners could still be hit with significant costs when exiting their investments, with the average seller now facing a capital gains…
Read More →
Love or Hate Rightmove
Estate Agent Talk

Rightmove launches new webinar to equip agents with market leading insights and business-boosting strategies

Rightmove, the UK’s largest property platform, is launching a new webinar to equip agents with the latest market intelligence and profit-boosting strategies to accelerate sales and improve conversion rates. The webinar titled, ‘From pitch to profit: Competing on more than just fee’, will take place live on Friday 17th October at 1pm, exclusively for Rightmove…
Read More →
Estate Agent Talk

60% of homeowners admit to stress & sleepless nights

Managing your mortgage and mental health as 60% of homeowners admit to stress and sleepless nights The latest insight from award-winning mortgage adviser, Alexander Hall, has shown that for the majority of homeowners, their mortgage is their single largest financial worry, with 60% stating that their mortgage worries have impacted their mental health at one…
Read More →
Commercial Agent Talk

Improve Tenant Satisfaction with Expert Commercial Property Management

In the world of commercial real estate, tenant satisfaction can make or break a property’s success. Happy tenants are more likely to renew leases, recommend the property to others, and take better care of the premises. However, achieving and maintaining tenant satisfaction requires more than just a well-maintained building—it takes expertise, communication, and a strategic…
Read More →
Breaking News

Attic bedrooms can boost the price of a home by a quarter

Latest research from Nationwide reveals how home improvements can boost property prices in 2025 Analysis based on Nationwide’s HPI data shows extensions or loft conversions with a bedroom can increase value by up to 24% But kitchen and bathroom renovations most popular improvements amongst homeowners in last five years 34% made green improvements, such as…
Read More →