Prices boom for luxury homes outside London as buyers look for more space and new lifestyle amid Covid pandemic
- Price of prime housing outside London surged at the strongest pace for a decade
- The prime market broadly makes up the top 5 to 10 per cent of homes by value
- Properties are typically the most desirable and expensive in a given location
The price of prime housing outside London has surged this year at the strongest pace for a decade, research has found.
The prime market broadly makes up the top 5 to 10 per cent of homes by value.
The properties are typically the most desirable and most expensive in a given location. They include country homes and those in coastal markets.
Londoners spent a record £54.9bn on properties outside the capital this year – the highest value on record by far and more than double 2015’s figure
And as buyers have looked for more space and made lifestyle changes as a result of the pandemic, price growth in the prime housing markets outside the capital averaged 9.3 per cent this year, marking the strongest annual growth since 2010, said property firm Savills.
Properties by the sea, in the glorious Cotwolds countryside and commutable private estates tended to be the strongest performers.
Cotswolds country houses worth more than £2million typically piled on nearly a quarter (23.4 per cent) to their value, with demand coming from local homeowners looking to upsize, those relocating and aspiring second home owners.
Prime coastal markets, most notably Devon and Cornwall, recorded average price growth of 15.6 per cent during the year, driven by high demand and shrinking supply, Savills added.
Only the capital’s largest houses with at least six bedrooms have come close to this price growth.
The figure for properties in central London averaged 2 per cent. ‘In these markets, the rarity factors – whether it’s a rarely available type of property, the most sought after locations, or simply the best view – have combined with high levels of buyer demand and wealth to create pockets of extremely strong market conditions,’ said Frances Clacy of Savills.
Research by Hamptons shows the number and value of new homes bought outside the capital by Londoners
First-time buyers are increasingly moving out of London, in contrast to investors and other home movers
On average, Londoners enjoy a comfortable £18,980 gap between their sale price and their property purchase
‘New buyer numbers over the past month are running 1.5 times higher than at the same time in the two years pre-pandemic, suggesting that these trends will carry through into the early part of next year, at least.’
Across prime urban locations, price growth totalled 9.1 per cent year-on-year, compared with 9.4 per cent growth in the rural markets surrounding cities such as Bath, Bristol, Cambridge, Edinburgh, Winchester and York.
Miss Clacy said: ‘We’ve seen the return of buyer demand in key prime city locations. But the value on offer in village and rural markets, because of their longer term underperformance, will continue to drive demand in these areas.’
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