South East and East Midlands drive up house prices
House prices rose by 6.6% in the year to November 2015 driven by strong increases in the South East (8.1%) and the East Midlands (6.7%), the LSL Property Services / Acadata House Price Index for England & Wales has revealed.
In the South East Luton’s house prices rose by 18.5% alone, while in Nottingham in the East Midlands prices rose by 10.6%.
London was split regarding house prices, as outside the top five central boroughs they rose by 11%. However in boroughs like Kensington and Chelsea prices dropped by 14.2% likely due to a higher top rate of stamp duty after it was reformed in December 2014.
Richard Sexton, director of e.surv chartered surveyors, said: “The typical home across England and Wales is now worth £17,963 more than at the end of 2014, with new price records established every month throughout 2015 after 12 consecutive monthly rises.
“December also marks the highest year-on-year house price growth for 10 months, and this may well prompt existing homeowners to move up to the next rung of the property ladder in 2016, freeing up homes at the bottom for first-time buyers.
“The rising tide of property prices has been propelled so far by a sinking supply of houses coming onto the market, compared with increasing enquiries from potential buyers eager to clamber aboard the property ladder.
“If the current speed of house price growth continues into 2016, the value of the average home may soon pass the £300,000 watermark, having reached £250,000 in December 2013.
“Property price rises have certainly left the recession in their wake, with house prices passing the £200,000 milestone only in October 2005.”