UK house prices rose for the consecutive month in June, according to Nationwide, taking the average house price to new highs.
Prices nationally rose by 1.0% m/m in June and 11.8% y/y (click chart):
Regular readers will know that my favoured and long-recommended locations for property owners and investors seeking capital growth are London and Cambridge, as noted on this blog on mangy previous occasions.
In the event London led the annual growth with a thumping 25.8% y/y gain.
And Cambridge was next up with 20% y/y growth.
These locations saw far less of a downturn in the financial crisis than regional areas and towns located far from London.
Of the London boroughs, many of our favoured choices where AllenWargent property buyers have bought properties - both for ourselves and for clients - featured prominently, including Croydon (+20% y/y), Ealing (+18% y/y), Greenwich (+23% y/y) and Islington (+23% y/y).
Interestingly a number of the strongest performers over the past 12 months in London have been 'second tier' boroughs.
As noted here on many occasions, we are moving into a new era, and there has been a global shift towards storing wealth in real estate.
The great leveraging up of previous decades in developed countries has largely already taken place.
If you want to outperform in the future, we believe that buyers with a long term outlook should look to inner suburbs of large capital cities, such as Sydney and London.
Cameron Kusher of RP Data in Australia prepared the below chart yesterday which underscores the point.
"The post financial crisis capital growth in Australia has been all about Sydney and Melbourne."