UK Regional Market Continues Growth Spurt

Britain’s prime regional property market continues to boom, with the highest rate of house price inflation in a decade.

Abode2 reports that prime regional property values climbed by an average of 2% in the last quarter, taking annual growth to +8.8%. London suburbs have seen 10.1% growth, while prices across the wider Southern region are now 9.6% higher than at this time last year.

Coastal areas have seen the biggest increases, and continue to out-perform the wider country house market. Seaside homes have risen in value by 3.1% in the last three months and by 14.8% in the last year. Cornwall (+16.5%), Norfolk (+15.8%), Devon (+14.1%) and Suffolk (+12.2%) have seen the highest annual rates of inflation, with Savills highlighting “intense competition” for the best-located property.

The Cotswolds have also been in particularly high demand – leading to a remarkable 18.5% surge in £2m+ property values over the last 12 months (compared to +10.8% for country houses in general, according to Savills). The average Cotswold country home is now worth 14.4% more than at the previous market peak, back in 2007.

Many of the lifestyle factors that have driven the prime housing markets since the start of the pandemic continue to be the main focus for many home moves. Strong demand combined with a lack of stock across prime coastal and country markets, in particular, has led to competitive bidding for properties that are priced right from the offset. With market momentum for these types of properties expected to continue through to next year, there’s still plenty of opportunity for those who are considering listing their home.