News: Mind the gap: London prices accelerate ahead of country

Tue, 26 Nov 13

That famous divide between the two rodents is now increasingly evident in the UK’s housing market, as the gap between prime London property and prime country home prices widens to its largest in several decades, according to Knight Frank.

The property consultants’ latest review shows that prices in the country market have started to gain momentum, driven by homes in the sub-£2 million bracket.

Indeed, following three years of falling prices, the prime country house market has come back to life, with three consecutive quarters of price growth. The average price of a prime country house has increased by 1.7 per cent since January 2013.

But the capital’s prime market has accelerated even further ahead.

“Since January 2009, the average price of a home in prime central London has increased by 57%. Based on this average price growth, a prime central London property purchased in 2009 for £1m is now worth £1.57m,” explains the Prime Country Review, from Knight Frank.

In the rest of the country, a £1m home would have grown by just 3.4 per cent in Wales, 0.4 per cent in the East Midlands and up to a maximum of 14.5 per cent in the South East; still significantly behind London.

If Aesop’s fable was rewritten now, the Town Mouse could buy the Country Mouse’s home and still have hundreds of thousands to spare.

See also: Central London House Prices

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