House Price ripple effect speads outside London at last

The long-awaited ‘ripple effect’ of wealthy London sellers using their windfalls to boost the market elsewhere is happening at last according to Hamptons International.
There had been scepticism that the effect – seen vividly and quickly in previous London housing booms – was less powerful this time around because of the relatively high proportion of overseas purchasers and investment buyers, and because some of the highest prices were being paid for new-builds not resales.

But Hamptons now claims that 14,700 homes across England and outside of the capital have been bought by Londoners so far this year, each spending an average of £330,000 and so adding up to almost £5 billion.

It also brings the number of homes bought by Londoners outside of the capital over the last 12 months to 44,000 representing £15 billion – the highest volume and value since 2007.

Londoners accounted for six per cent of sales outside of the capital so far this year, up from 4.5 per cent in 2013 and the highest proportion since 2007. The highest proportions are found in the east of England and the south east, accounting for 14 per cent and 11 per cent of all sales respectively.