Despite a downturn in the housing market, some regions are experiencing more than double the annual growth rate of 3.1%, according to Rightmove. Property prices in Northamptonshire have gone up by 9.1% in the past year – the largest increase in the UK – as soaring house prices in London force buyers to look outside […]
Despite a downturn in the housing market, some regions are experiencing more than double the annual growth rate of 3.1%, according to Rightmove.
Property prices in Northamptonshire have gone up by 9.1% in the past year – the largest increase in the UK – as soaring house prices in London force buyers to look outside of the capital.
Growth in Northamptonshire increased by 2.2% in August, taking the average price of a property to £256,642.
By contrast, average house prices in London went up 1.6% over the past year to £629,270.
The property website said that counties across central England were experiencing a mini-boom.
Average prices have gone up 7.9% in Derbyshire over the past year and by 7.4% in Norfolk.
Other counties that have seen a surge in prices include the West Midlands, Worcestershire, Bedfordshire, Nottinghamshire and Merseyside.
Substantial property price rises in central London over the last few years have caused increasing numbers of people to seek property in more affordable areas such as Luton and Brentwood.
Northampton’s transport links and easy proximity to London – the train journey takes less than an hour – make it popular with commuters looking for cheaper prices outside of the capital.
Miles Shipside, Rightmove director and housing market analyst, said: “With a shortage of suitable choice in many parts of the country, buyers are becoming increasingly adept at hunting down property that fits their budget, ticks the boxes on their checklist and stirs their emotions.
“Properties in the counties that have seen above-average price rises over the last year are clearly meeting the needs of home-hunters at relatively affordable prices.”
On a monthly basis house prices went up by 0.9% in August to £313,663.
Shipside said that the “heat has come off much of the market”.
“A combination of traditional summertime price blues and the chill of uncertainty in the air has cooled price growth in some parts of the country, and affordability also remains very stretched,” he added.
“But despite these factors, high demand and limited supply are still driving momentum, especially in the counties in the middle of the country.”
Adam Wellesley, director of Horts Estate Agents in Northamptonshire, said the high annual growth was likely to be down to the “close vicinity for commuters to get to London Euston, as you can now get there within 48 minutes”.
“You can also get to Milton Keynes by train in 10 minutes where prices are 20% higher than Northampton. The buy-to let market and commuter market has stayed reasonably buoyant. Investors are still managing to find a 5% return on property and up to 10% for houses of multiple occupancy.”
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