UK annual inflation in September up 0.6% compared with August, while London prices decline…
The ‘north-south divide’ seems to be diminishing, as London’s house price growth continues to lag behind the rest of the country.
The north west of England continues to dominate, with a 7.3% rise year-on-year according to the September house price index by the Office for National Statistics (ONS).
By comparison, the capital saw growth drop by 0.2% since August to just 2.5% year-on-year.
As a whole, the UK experienced an annual price increase of 5.4%, up from 4.8% in August.
This is a much faster rate than what has been reported in other recent house price indices; 2.5% according to Nationwide, and just 1.4% announced by Rightmove.
Buy-to-let investors are turning away from the capital and Jonathan Hopper, manging director of Garrington Property Finders, believes economic growth in the north and higher yields are a possible cause.
“In the 12 months to September, prices in the capital rose at barely a third of the pace of those in the fastest-growing region.
“This shift is being driven by a steady flight of equity from London – and other previously overheated regions – to areas with greater affordability.”