Figures released today have indicated that house prices in East Anglia and the south-east are rising at a quicker rate than those in London.
Data from the LSL/Acadata house price index shows that London is not the front-runner in regional house price growth for the first time in the past four and a half years. However, it must be noted that the index for April could contain figures conduced from the pre-election slowdown.
Statistics from the report indicate that sales were down by 10% in the first-quarter of 2015, with election uncertainty the likely cause. House purchase mortgage approvals were also down by nearly 2% year-on-year to April.
Acadata suggests that the average house price in England and Wales is actually at a new high of £275,961.
In the South East of England, the annual price inflation for property is now 7.1%. East Anglia recorded a figure of 6.9%, whereas London’s annual inflation is only 6.8%.
Peter Williams, analyst at Acadata, said that, ‘we don’t know at this stage if the decline in London’s dominant position will be reversed now that the results of the general election are known.’ He feels that now the uncertainty of an impending mansion tax has been removed, the market should return to strength.
However, Williams noted that, ‘the Chancellor’s 12% SDLT rate on properties costing in excess of £1.5m remains in place.’ He believes that,’ ‘this may be one of the main causes of the current slowdown in property sales in prime central London.’ More positively, Mr Williams went on to say that, ‘all the evidence suggests that generally, confidence in the housing market will increase, so a more buoyant market across England and Wales is likely.’