For the first time since the credit crunch, the UK’s prime regional markets marginally outperformed 
the capital in 2014 with growth averaging 3.2%.

The new rates of stamp duty introduced by the Chancellor in his Autumn Statement on December 
3rd 2014 brought mixed blessings 
for different parts of the market.

For all buyers below £937,500, stamp duty rates have fallen and this is reflected in levels of annual price growth. Above this margin, the increased rates of stamp duty resulted in an adjustment in values 
at the top end of the market in the final quarter, most notably in the higher value extended commuter belt of London.

"The new rates of stamp duty introduced by the Chancellor in his Autumn Statement brought mixed blessings 
for different parts of the market"

This said, given a strong performance earlier in the year, these commuter markets showed the highest level of annual growth. Prices rose by 4.6% in the London suburban markets such as Esher, Rickmansworth and Loughton and by 3.7% in the inner commuter zone in the likes of Sevenoaks, Guildford and Beaconsfield.

While the markets within the commuter zone, up to an hour from London, are all now at or above their 2007 peak, the regions beyond these areas are some way below this level. Prices remain on average 10% below their 2007 peak across the remainder of the South of England and over 20% below across Scotland as an average. The markets of the Midlands and the North falls between the two (-14.8%).

In the sub £1m prime market that predominantly benefits from a cut in stamp duty, average prices rose by 4.6% in 2014, fuelled by particularly strong growth in the first six months of the year. These lower value prime markets, particularly those well-connected to London, are forecast to see the strongest growth over the next year and into the mid term.

Higher value homes in the £2m+ range recorded marginal -0.8% falls over 2014, as values fell by -3.1% in the last three months of the year.

The other overriding feature of the regional market remains the stronger performance of properties in urban locations. Annual growth in prime cities across the UK, such as Oxford, Cambridge, Bath, York, Chester and Edinburgh, averaged 5.8% price growth over 2014 compared to an average increase of 3.1% in their surrounding villages and 0.9% in rural locations.

click on image below to enlarge

Taken from
Market in Minutes: Prime Regional Residential Markets - Jan 2015