24 Jan

Slowdown seen in prime regional property

Slowdown seen in prime regional property

The end of last year saw a slowdown in the annual growth of prime regional properties.

Data from Savills revealed annual growth was at 0.1 per cent during the last three months of the year and 1.8 per cent for the whole of 2016.

It is thought the ongoing uncertainty over the impact of Brexit, as well as the impact of stamp duty changes on prime properties and second homes could have undermined the market. In addition, property buyers are also looking in new areas to ensure they get the best potential returns on their investment.

“It is clear now that demand is being driven much more by size and value than location, with buyers prepared to move further afield for a good deal,” explained Lucian Cook, head of residential research at Savills.

The strongest regional growth was seen in lower value markets in areas around 30 to 60 minutes’ commute from the capital.

According to the report, properties under £500,000 saw a 0.5 per cent quarter on quarter price increase, 3.4 per cent year on year and 14.9 per cent over the past five years.

However, in the £500,000 to £1 million market, prices were up 0.3 per cent compared to the previous quarter, 2.7 per cent compared to 2015 and 11 per cent higher than in 2011.

“We are forecasting there to be little growth across the prime country markets over 2017. The slowing down of growth across these markets over the last year, and especially in key regional cities, suggests that sellers need to be responsive to current market conditions and the fluctuations in demand that are expected over the next two years,” said Mr Cook.

He added: “We expect demand for good quality stock in areas with good schools and transport links to London to remain strong. More generally, properties that present opportunities for buyers willing to take a medium-term view on pricing will remain popular.”ADNFCR-1222-ID-801831426-ADNFCR

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