14 Apr

Outlook improving for non-London prime property

Outlook improving for non-London prime property

Prime residential properties outside of London are set to enjoy positivity in the medium term, according to new research from estate agent Savills.

The findings show that although there is some caution ahead of the next month's general election, property away from the capital could still see a growth in value.

The study also revealed there are strong differences in performance, especially in regions further away from London and this is reflected in price. For example, a property worth £1 million in 2007 would now be worth £1.34 million in London, £1.05 million in the commuter zone around the capital and £780,000 in Scotland.

It is expected that some prime property away from the South East will face challenges in the coming year as the market develops.

"Within each of these areas, the prime urban markets have generally been on the rise, while their rural counterparts have lagged behind to date. Although the medium-term prospects remain positive, all of these submarkets face challenges in 2015," explained Lucian Cook, head of residential research at Savills.

He added that increased regulation of the mortgage market and changes to the stamp duty will have an impact on the prime market.

Mr Cook also highlighted the recent debates on mansion tax as leading to further uncertainty for those moving up the property ladder.

However, Savills are still forecasting growth for the sector, with a 19.6 per cent increase in value over the next five years for prime homes away from the capital.

"If the current uncertainty around further taxation is removed we would expect a much quicker bounce back and a more orderly reinstatement of the ripple effect that appeared to have gained some traction in the first half of 2014," Mr Cook explained.ADNFCR-1222-ID-801783420-ADNFCR

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