London defies expectations
Today’s Hometrack UK House Price Index put London growth at 12.0% in the year to October and 4.1% in the three months before.
And earlier in the week, based on Land Registry figures analysed by London Central Portfolio, it was revealed that the cost of Prime London houses shot up by 20.15% in a single quarter.
The results are surprising given predictions of a London slowdown before the latest quarterly increase.
In September for example Savills research analyst Edward Green said: “Controversially we think London will be the worst region of the UK in the next five years.
“Given where we are in the cycle London house prices are far, far higher than at other previous peaks in the market so that’s our forecast – you can forget annual house price growth going forward in the next five years.
“We think there is a lot more growth potential, especially in the South East and the East but even up to places like the North West and the North East.”
Jeremy Duncombe, director at Legal & General Mortgage Club, reiterated his calls for more housebuilding to keep price rises under control.
He said: “Vastly inconsistent house price growth in different regions is damaging for the overall health of the market as it forces people away from their preferred location of choice, meaning that many may have to move away from family and friends in order to own their own home.
“In order to subvert this trend we need to build at least 250,000 more homes per year and bring supply in line with demand. Equally as important is building those homes in the right places, ensuring that there are enough properties to buy in all regions of the country.”