South East house prices have overtaken London following annual growth of ten per cent in the last year, according to the latest figures from Rightmove.
The firm’s House Price Index showed that growth in the capital was 9.6 per cent for the same period, while growth of 37 per cent is anticipated across the South East for the next five years.
This compares favourably to a price increase of 33 per cent in London and 30 per cent as an average for the UK.
“The ripple effect of buyers priced out of London combined with those cashing in and moving out of the capital means that the South East has taken London's boom-town crown,” said Miles Shipside, Rightmove director and housing market analyst.
Only growth of three per cent in seller numbers in the South East was reported on a monthly basis, the slowest pick up of properties coming to market.
This suggests that buy to let investors and potential home owners have turned their attention to other areas of the country for opportunities to take advantage of fast-appreciating property assets.
However, with such high price increases expected in the South East, certain locations are expected to see rapid growth in the coming years.
Mr Shipside identified Southampton, Brighton and Luton as the top three locations where massive growth is expected.
“This is not an opinion-based prediction but the most comprehensive data-driven forecast ever produced, and it shows gains of over 40 per cent in those areas,” he added.
“They are either due to a price over-spill from neighbouring areas, have good transport links with London, or both.”
Brighton, in particular, benefits from only being a 50-minute commute from the capital and this has had a knock-on effect on property prices – up by around 20 per cent in the past year.
Rightmove’s Index revealed that property price inflation slowed in October by 0.3 percentage points, down to 7.6 per cent after a monthly increase of 2.6 per cent.
Meanwhile, the firm’s time to sell index rose slightly from 65.8 days to 67.8 days in the last month, suggesting people are in less of a rush to sell.
This part of the Index also takes into account regions where optimistic asking prices could be stalling sales – usually in areas where demand is not higher than supply.