The UK housing market is becoming a dual speed environment with London property, south-east housing, and property in east England increasing in value at a pace which no other area in the country can match. The pace of increase for these three areas is almost double anywhere else. Prices in these areas average about 8.5% higher for the year.

The average price of a house in the city of London, according to the Land Registry, has almost reached £489,000. This is but one example of how areas outside the capital city are not even scratching at the heels of London property. Prices outside the capital city remain quite stagnant and almost muted.

Prices are struggling in many other areas to stay in motion. The north-east properties are increasing in value at just a 0.4% rate year on year. There is not much space between that area and the north-west. The region’s properties are increasing at a year on year rate of 1.4%.

Andrew Bridges of Stirling Ackroyd made remarks about how London is a microcosm of the UK.

He said: “Here London’s start-up hubs are driving local industry to global heights. And this is reflected in an eastward shift in property prices. Hackney, for example, has seen annual house price growth five times faster than Kensington and Chelsea.”

Upward pressure on housing prices continues due to a shortage of properties, low mortgage rates, and more people earning higher incomes each year. For those owning property, banks are leaving many attractive deals on the table with an opportunity to remortgage.