Homeowners in certain areas of the UK are due to see continued increases in their equity levels, namely  Brighton, Southampton and Luton, which are forecasted to be the locations that will see the highest increases in property values.  According to data from website property lister, Rightmove, prices are rising in the South East faster than in London.  October asking prices are up 10% in the South East while only 9.6% in London.  House values have been predicted to increase by 37.3% in the South East by 2019. 

The current asking price in England and Wales was reported for October to have increased by 2.6%.  September had only shown growth of 0.9%.  Annually the average house price rose to £271,669 which is a 7.6% increase.

The high cost of purchasing property in London has pushed many out into other areas to seek more affordable property.  The possibility of selling property at a high rate or leasing a property at a top return in London has offered the opportunity for homeowners to move home and gain returns on their investment.  This has made the South East a popular destination to wealthier UK residents that are sidestepping London.

Miles Shipside, of Rightmove, remarked, “The South East has kick-started its journey on the five-year road to the highest growth in values by overtaking London in this month’s index. Those looking for the best price appreciation in the country should seriously consider the South East, and some may wish to fine-tune their search to the top three locations of Southampton, Brighton and Luton.

“The ripple effect of buyers priced out of London combined with those cashing in and moving out of the capital means that the South East has taken London’s boom-town crown. Upwards price pressure is being further fuelled by a reluctance of home owners in the hotspots of the South East to come to market.

“Some can see the value in holding onto their fast-appreciating property asset, whilst others cannot find anything for sale locally on the market that tempts them to sell and move on.”

In response to the optimistic forecast for property values in the South East, Mr. Shipside remarked, “This is not an opinion-based prediction but the most comprehensive data-driven forecast ever produced, and it shows gains of over 40% in those areas. They are either due a price over-spill from neighbouring areas, have good transport links with London, or both.”