New research from Savills shows that the average price of a property in England and Wales increased by almost 300% over the last 20 years.
The report, which has been compiled based on 20 years of Land Registry data, has shown that the average sale property price has increased from £66,110 n 1995 to £262,847 today.
Commenting on the research, Lucian Cook, head of Savills UK residential research, said: “The twenty biggest risers are dominated by central London markets, though they also include some areas that have seen substantial gentrification over the period. This includes Queens Park and Kensal Green in Brent, East Dulwich and Cathedrals in Southwark and Stoke Newington Central and Dalston in Hackney.
“Looking at the top thirty performers outside London, Brighton and Hove, North Oxford and Cambridge all feature prominently, as well as a few coastal markets in Norfolk and Cornwall and prime commuter wards such as Harpenden South, Denham North and Luffield Abbey.
“At the other end of the scale, areas that have seen the smallest growth contain a number of wards in Blackpool and Middlesbrough.”
Although the new research from Savills does not predict what the future holds for UK property prices, the property experts have forecast a 17% rise over the next 5 years.
Looking to the future of the market, property site thehouseshop.com has recently asked property experts what 2016 holds for the market.
Henry Pryor, the BBC’s favourite property expert commented: “Talk of the demise of buy-to-let is greatly exaggerated, but the days of making money from property as easily as falling off a log are over. The truth is that we have got fat and lazy and many people have mistaken a rising market as a perpetual summer, when in truth, the property market ebbs and flows and winter follows sunshine as surely as night follows day.”
“It has been claimed that the 3% stamp duty premium is likely to lock out new entrants to the buy-to-let market and pave the way for a transfer of housing stock from small investors to larger corporations. But that is unlikely to be the case in London and South-East England where many landlords regard their buy-to-let properties as long-term investments. The stamp duty premium will add £12,000 to the purchase cost of a £400,000 buy-to-let property, which can be recouped over the life of the investment,” Property Division’s, Nelly Berova stated.
And Dale Anderson from Experience Invest said: “We may see a rise in demand for alternative opportunities such as student accommodation which has a lower entry level. Investors may seek opportunities towards the bottom of the scale to avoid facing a higher tax bill. We also expect that investors will shift their attention to the north – where property prices are much lower than London and the south east of England.”