The gap between average property prices in London and the rest of England and Wales is closing, as more investors begin to focus on key regional cities.
- Average property prices in England and Wales continue to close the gap on those found in London
- Values are now just two times higher in the capital, compared with three times higher in March 2016
- With London beginning to reach an affordability ceiling, strong yield and capital growth levels of real estate in key regional cities are starting to gain more investor attention
Average property prices in regional areas of the UK continue to close the gap on those found in London.
In March this year average values in London were three times higher than those found in the rest of England and Wales. But according to the latest data released by Land Registry and the Office of National Statistics, prices in the capital in May were just two times as much as those found in the rest of the country.
Since the introduction of April’s additional stamp duty charges for investment property, real estate in London has become increasingly more unaffordable to the global investor community. It comes at a time when investors were already reducing their interest for property in the city long-renowned for its ability to deliver high rates of appreciation.
Furthermore, yield growth in key regional cities has prompted many to shift their focus onto other areas of the country. Cities such as Manchester, for example, currently boast the highest yields in the UK, while supply to demand imbalances and one of the fastest growing populations in Britain have further driven the appetite for property in the city.
Last week the UK’s largest estate agency reported reduced investment into London’s property sector since Brexit, but otherwise unaffected levels in other areas of the country, underlining the continued sentiment for real estate in regional UK cities.