The gap between property prices in England & Wales and London has closed significantly since March, when property in London was three times more expensive than the rest of the country.
The new data set released by Land Registry in conjunction with the Office of National Statistics (ONS) and analysed by London Central Portfolio (LCP) indicates that the average price of property in England & Wales reached £221,832 in May, now standing at almost half the price of Greater London (£472,163).
Average prices in England & Wales have increased 1% versus the previous month, and 8.7% year-on-year with London prices showing an increase of 1.5% versus the previous month and 13.6% year-on-year.
These latest statistics demonstrate that prices in England & Wales have begun to feel the benefits of record low mortgage rates and recent Government stimuli initiatives such as the 2014 reduction in Stamp Duty and the much-trumpeted Help to Buy scheme.
Price growth in May reflected a healthy 1% increase versus the previous month, whilst prices were up 8.7% year-on-year, well above the average market appreciation seen since the Credit Crunch of just 4.9% per annum.
Despite the new Land Registry data suggesting that prices in England & Wales are quickly catching up, the picture in London also remains very strong. In May, prices were up 1.5% versus the previous month and 13.6% year-on-year.
Naomi Heaton, CEO of LCP, commented: “This new data is certainly encouraging news for the domestic property market as a whole, where average prices are under £500,000.
“Despite the uncertainty pre-EU referendum and a widely anticipated pull back post April 1st, following the introduction of the new 3% additional Stamp Duty levy, all areas appear to reflect high levels of appetite.
“One word of caution, however, is that this does not factor in any change in sentiment since Brexit. Weakening economic indices and potentially more stringent mortgage criteria imposed by banks may create a downward pressure on the domestic market.”