South East beats London house price growth

Sarah Davidson

May 15, 2015

Surveying firm e.surv published data suggesting the annual rate of property price growth has halved since last summer, down to 5.3% in April, bringing the average house price to £275,961.

Meanwhile first quarter sales were down 10% before the general election though the firm predicted that the Conservative majority provided “new certainty” which was likely to “reset the balance”.

Richard Sexton, director of e.surv chartered surveyors, said: “House price growth has jolted awake again in April, climbing 0.2% (£600) in the past month, following what was a more lethargic period for property values.

“The direction of travel is clear and accelerating – and most importantly, momentum is picking up where it was lacking before.”

The South East and East Anglia edged ahead of London with the strongest year-on-year increase in property values of all regions across the country, at 7.1% and 6.9% respectively.

In contrast, annual growth in London has shrunk from 9.0% in February to just 6.8% in March 2015.

Sexton said: “This is the first time for nearly four and a half years that London has not been leading the pack in terms of regional house price growth, as higher stamp duty rates take some of the shine off high-end properties in prime central areas.

“In the City of Westminster, where the average property is now worth £1,382,965, prices dropped 5.2% during the month of March, as pre-election speculation about a mansion tax put a dampener on enthusiasm for the most exclusive London homes.”

London also saw the sharpest decline in completed home sales between Q1 2015 and the same period a year ago, falling 16.5%.

Sexton added: “Election uncertainty has now vanished, so arguably London’s property market could see a fresh boost.”

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