We have forecast higher mainstream house price growth in the South East and East of England than in London over the five-year period to 2019. This is because mortgage lending restrictions and low income growth are limiting the affordability of London property, and so demand for cheaper houses in the surrounding areas is growing.

As identified earlier, house price growth in commuter belt locations such as Buckhurst Hill and Bishop’s Stortford tends to behave more in line with the South East than London, and so these areas appear set to enjoy a halo of value growth around London as buyers look further out for value.

Source: Savills, HM Land Registry
NB: These forecasts apply to average prices in the secondhand market. New build values may not move at the same rate