Rippling out: house price growth in London and the South East pushing home buyers out of capital and commuter belt

The average sold price for a London house continues to edge ever closer to £500,000 according to the latest figures released today.

Office for National Statistics (ONS) data showed that London buyers paid an average of £489,000 in July 2017 after a year-on-year rise of 2.8 per cent.

Despite comparatively slow price growth, London first-time buyers paid an average of £429,000 for a home, a 2.9 per cent increase, with the average price of a flat or maisonette up £16,240 on a year ago.

“Our latest branch data shows that the number of first-time buyers registering in London is down 27 per cent on the year,” said Paul Smith, CEO of haart estate agents.

“Salaries simply cannot keep pace even with more subdued growth, and being stuck in a never ending rental trap is becoming the reality for increasing numbers.”

Instead, the nationwide figures suggest that aspiring London buyers are taking their search for a home further afield.

THE NATIONAL PICTURE

Throughout the country house prices were up 5.4 per cent, thanks in part to increasing numbers of ex-Londoners buying outside the capital.

However, the figures suggest buyers from London are now looking outside traditional commuter areas with the South East showing the most significant monthly price fall or 0.4 per cent to £321,000 – although prices were still up 3.8 per cent year on year.

The highest performing local authority in the country was Cotswold, where prices rose 16.2 per cent in a year to £385,000.

“Our Cotswold branches have been busy this summer, with higher levels of demand coming from families moving from London and the Home Counties for a wholesale change in lifestyle,” said Nick Leeming, Chairman at Jackson-Stops.

“Very often these are people who are able to be flexible in their working lives and are keen to give their children the best possible environment in which to grow up.

“Homeowners want to get on with their lives, but will not be willing to pay a premium to do so.”