This Is The Sound Of The Suburbs
Recent figures show that house prices in central London are starting to fall and the suburbs are becoming the place to be. Homes in Kensington and Chelsea have already seen prices fall by 1.6% during February and March 2015 as people head to the commuter belt for a more affordable lifestyle and more importantly affordable property prices.
The upcoming introduction of the Crossrail link has been seen as a major influence in the sudden increase in house prices in the suburbs where the popular areas of Greenwich, Reading and Bracknell in particular are now becoming very popular with commuters.
Prices in Greenwich have risen by a reported 18.8% recently, Bracknell which is close to the M4 in Berkshire has seen annual rises of 13.6% and figures in Reading are reported to be in the region of 13.5%. Cheaper house prices and improved transportation links to the centre of London are being seen as a major factor in these new commuter areas becoming more popular and this has lead to some parts of south-eastern England seeing annual rises in house prices of more than 13% each year.
Figures made available by the Land Registry have shown that prices in some parts of Outer London have increased by nearly 20% a year again swelling the movement out to the suburbs and increasing prices in these now popular commuter belts.
Similar can be said for Manchester where the expansion of the Metrolink tram system into East Manchester and beyond has lead to rises in house prices of 9.2% in both Trafford and Salford.
The areas are also popular with our own House Crowd property team when they select new investment opportunities and the introduction of the BBC and Media City to the newly regenerated Salford area will also have contributed to these rising prices in what were unloved parts of Manchester.
If you are a regular House Crowd investor you will no doubt be aware that we have been selecting our portfolio of properties in these parts of Manchester always keeping one step ahead of the new markets.
North of the border figures reported by the Registers of Scotland showed that in East Lothian at the eastern fringes of Edinburgh property prices had seen an increase of 28.6%.
However the same cannot be said for all parts of the UK, in the north-east prices were seen to fall 4% during the period February to March 2015. An example of Darlington, County Durham was reported by the Land Registry to have seen prices fall by 6.2% over the last year.
The housing experts are now expecting that the average house prices will rise by 5-6% during 2015 partly due to the cost of borrowing remaining low and introduction by lenders of products such as a 1.09% 2 year fixed rate mortgage deal.
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