Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 26 November 2016

London prices up 86pc from low

Capital performance

According to Hometrack city level UK house price growth continued to track at +8.4 per cent in the year to October 2016. 

The 20 cities index is thus outperforming Britain as a whole.

In London house prices were up by +9.1 per cent over the year to October to be a thunderous +86 per cent up from their post-financial crisis nadir.

London is now a two-speed market with premium properties failing to sell in the face of punitive stamp duties and prices in prime central London accordingly now flat at best.

However, outer London and properties in the lower price percentiles have seemingly remained fairly robust to date. 

In adjacent Cambridge - the biotech capital and probably my favourite UK city - prices are up by 84 per cent. 

I spent some time in Cambridge over the summer and the place was positively buzzing, so I wasn't at all surprised to see the famous old University city topping Grant Thornton's Vibrant Economy Index for 2016 as the best place to live and work. 

Oxford was listed in second spot, and house price growth since the financial crisis has mirrored these rankings. 

Price growth has clearly radiated out from the capital to Oxford and Cambridge, but with the honourable exception of Bristol few cities have seen any meaningful real price growth over the past decade, despite recovering from their lows. 

The worst performing city in the index over the past year was Aberdeen, where house prices followed oil prices down to drop by -8.1 per cent.

Hometrack's full report can be found and downloaded here.