The gap between house prices in London and other major regional UK cities has grown to its widest level in 20 years.
Homebuyers can expect to save on average £300,000 if they ditch the capital and move to Manchester, according to data released this morning by Hometrack.
The gap was greatest in Glasgow, where buyers could expect a 75 per cent saving. London house prices have increased at an annualised rate of 8.3 per cent, up from 6.6 per cent in May. The increase was driven by a persistent undersupply of housing within London.
“City level house prices continue to increase as demand for housing grows in the face of constrained supply. A changing mix of buyers is compounding the scarcity of housing for sale with rising numbers of first time buyers and investors buying property while having nothing to sell,” said Hometrack research director Richard Donnell.
Rents in the capital are also on the rise, with data released this morning by Landbay revealing a 3.4 per cent rise. Hammersmith and Fulham saw the largest rise, where rents have surged 11 per cent over the past year.