Current migration out of the city could be a result of this price growth, as buyers at the mid to lower end of the property ladder are being priced out of the capital.
While the average price of a new home in many regions across the UK is down from the same time last year, by as much as 8.4 per cent in Wales and 12 per cent in the South West, London properties remain in high demand, resulting in strong price growth.
A new home in London will cost buyers on average £397,583, making London by far the most expensive region in the UK.
Buyers in the capital face prices that are up to £180,000 more than an equivalent property elsewhere in the country.
David Bexon, Managing Director of SmartNewHomes.com, said: The high demand for properties in London has resulted in buyers at the top end of the market offering maximum prices, often over the asking price to secure the property they desire.
Consequently, it appears that buyers further down the property ladder are being forced to sacrifice a city home and move to within commutable distances of London.
London has been experiencing increased migration away from the city, which could be a result of this price growth, as new homebuyers look to nearby regions in the South East and East Anglia where property is more affordable.
The South West continues to attract new homebuyers, with more people looking at properties in this region than any other in the UK.
The continued interest suggests the region is a popular choice for those buyers looking to escape to the country, whether this be a complete move, or the purchase of a second home.
Bexon said: While these regions are also experiencing positive price growth, they are a long way behind London prices and still offer buyers better value for money, as well as high speed, direct commuting links into the capital.
Both the South East and counties such as Essex and Hertfordshire have experienced an increased level of inward migration over the last year as prices in the city boom.
Find your ideal house, flat or apartment here
Loading ...