South East expected to outperfom London

April 6, 2016

House prices in the UK are expected to  grow more slowly in the second-half of 2016 according to predictions  by the Centre for Economics and Business Research (CEBR), however house prices in the South East are expected grow faster than London as more homebuyers are driven out of the city by an increasingly expensive housing market.

The high cost of housing in London is caused by the chronic shortage of housing supply and new homes are not being built at a rate sufficient to compensate for this shortage, factors that are driving up both rents and property prices.

The economics consultancy predicts that house prices will increase by 4.9 per cent in 2016 overall compared with 6.7 per cent last year and 10 per cent in 2014.

East London residential property prices increased by 7% in the year to March, according to  new research from JLL today,  the property firm’s latest central London development report shows a reduction  in sales activity in the first 3 months of the year and forecasts that development activity will also continue to slow this year as a result of tougher tax rules introduced by the government.

 

 

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

Overseas Property

Why 2026 is the Best Year to Invest in Dominican Republic Land

If you’re eyeing Caribbean real estate, 2026 offers an exceptional window to invest in Dominican Republic land. The country has emerged as the fastest-growing Caribbean economy, creating ideal conditions for land investors. Tax incentives, infrastructure projects, and rising international interest are converging at just the right moment. Whether you’re searching for beach land for sale…
Read More →
Breaking News

Property expert on how to bag the BEST mortgage deal in today’s market

Finding a good mortgage deal in today’s market demands more than just comparing rates. While the average 2-year and 5-year fixed mortgage rates have gone down this year, they’re still higher than rates pre-pandemic. This means those in their current homes will have to pay more than they once were each month, and new buyers…
Read More →
Breaking News

Halloween Named the UK’s Most Popular Moving Day of 2025

Halloween was the most popular day to move house in 2025, breaking the long-standing trend of summer being the busiest time for home moves. We analysed the data and spoke to industry experts to understand why the peak moving day has shifted and why it fell on an international holiday.  Compare My Move reviewed more than 170,000 house moves made in 2025 and…
Read More →
for sale sign london
Breaking News

Industry Response to Halifax House Price Index

Industry response to the Halifax House Price Index December 2025 The latest index shows that: – On a monthly basis, house prices fell by 0.6% between November and December of last year. Annually, house prices were up 0.3% versus this time last year, although this annual rate of growth had slowed from 0.7% the previous…
Read More →
Breaking News

Halifax House Price Index December 2025

House prices in December 2025 were 0.3% higher compared to the same month a year earlier. UK house prices dipped in December • House prices dipped by -0.6% in December, following a -0.1% fall in November • Average property price is now £297,755, the lowest since June • Annual growth slowed to +0.3%, down from…
Read More →
Breaking News

Homebuyer demand returns following Autumn Budget

New research from Property DriveBuy reveals that Bristol, Tyne & Wear, and South Yorkshire emerged as the UK’s most in-demand areas of the housing market following the Autumn Budget, with as many as 61% of homes listed for sale successfully securing a buyer in Q4 2025. Property Drivebuy analysed residential listings data across the nation…
Read More →