Prime property prices on capital commuter links rise
Prime property prices in London commuter locations have seen a rise during the second quarter of 2016.
According to data released by Knight Frank, property in UK locations on key train lines have seen substantial rises.
Prime positions
In Bristol, where commuters can easily access London’s Paddington station, property prices have increased by 7.4% in the year to June. The second quarter of 2016 saw a 17% increase in new buyer interest and a 19% rise in viewings.
Nearby in Cheltenham, prime property prices increased by 8.6% year-on-year and 2% in the last quarter. In Oxford, prime property values rose by just 0.3% between April and June, taking annual price growth to 0.7%.
Oliver Knight, research associate at Knight Frank, said, ‘after several years of strong price increases, during which the city has comfortably outperformed the wider UK, the latest figures suggest that price growth at the top end of the market in Oxford has started to ease.’[1]
‘While the fundamentals underpinning the market remain unchanged, the reasons for the easing are twofold. Firstly, there was a softening in demand for prime property in the immediate run up to the EU referendum, with potential purchasers adopting a wait and see approach. Secondly and arguably more importantly, recent changes to stamp duty levied on the purchase price of the most valuable properties has made buyers increasingly price sensitive,’ he continued.[1]
Prime property prices on capital commuter links rise
Imbalance
A rising imbalance between supply and demand is driving price growth in the Cheltenham market. In all, there were 19% less prime properties available for sale in Cheltenham at the end of June in comparison to last year. What’s more, demand has been underpinned by historically low interest rates, with buyers able to gain from very inviting fixed-term mortgage deals.
Nick Chivers, of Knight Frank Cheltenham, believes that the town has some of Britain’s best schools and transport links. He feels, ‘these assets, combined with the on-going imbalance between supply and demand, will continue to underpin sales in the area.’[1]
Meanwhile, Knight observed, ‘Bristol’s continued strong price growth highlights an ongoing trend of demand among buyers for properties in towns and cities that are home to excellent transport links, schools and amenities.’[1]
[1] http://www.propertywire.com/news/europe/uk-prime-property-prices-2016082412304.html