Luxury home prices outside London rose at the strongest pace in more than a decade in 2021 as home hunters sought more space and made lifestyle changes due to the COVID-19 pandemic.
Growth across major housing markets outside the capital has averaged 9.3 percent in the past 12 months, the strongest annual growth since 2010, according to property advisory firm Savills.
Homes in the prime price bracket make up the top 5 to 10 percent in value, and are usually the most preferred and most expensive in a particular location.
Coastal and Cotswolds real estate and private equity real estate were the strongest performers this year.
The value of Cotswolds country homes in the market over £2m has risen by nearly a quarter, amid increased demand from local homeowners looking to increase their size as well as those relocating and aspiring second homeowners.
Savills said major coastal markets, notably Devon and Cornwall, posted average price growth of 15.6 percent during the year, driven by rising demand and shrinking supply.
The price hike came as Londoners spent a record £54.9 billion on property outside the city in 2021 after the pandemic triggered the biggest wave of people leaving the capital in a generation.
London-based homebuyers bought more properties elsewhere in 2021 than in any other year since 2007, when £36.6 billion was spent, according to figures compiled by property consultancy The Hamptons.
Savills said the capital’s largest homes, with at least six bedrooms, approached the country’s markets for price growth, with price growth in central London overall averaging 2 per cent in 2021 and 3.7 per cent in central London. London Outer.
“In these markets, the factors of scarcity: whether a type of property is rarely available; the most desirable location; or simply the best view, have combined with high levels of buyer demand and wealth to create pockets of very strong market conditions,” said Francis Classe of Savills. “.
“The numbers of new buyers over the past month are 1.5 times higher than at the same time in the two years prior to the pandemic, indicating that these trends will continue into the early part of next year, at least.”
I look ahead, Savills It expects 6 per cent growth in key London boroughs in 2022, up from 3.2 per cent this year.
The consultancy emphasized, however, that renewed uncertainty about the coronavirus Omicron variant could drive that growth into later in the year.
Savills said prices are starting to rise again for apartments in key areas, as people are starting to head back into town or look for a place to use while they’re there.
In key urban locations, price growth totaled 9.1 percent year-on-year, compared with 9.4 percent growth in key markets surrounding cities such as Bath, Bristol, Cambridge, Edinburgh, Winchester and York, according to Savills data.
“Since the summer, we have seen a return of strong buyer demand in key locations in the city,” said Ms. Classy.
“But the value proposition in rural and village markets, due to poor long-term performance, will continue to drive demand in these areas.”
Updated: December 28, 2021, 11:40 am