Property prices increase driven by South East

UK property prices increased by 9.0% in the year to March 2016

10% annual increase in England property prices

Latest figures from the Office of National Statistics (ONS) offer an insight into the UK property market.

The House Price Index for March 2016 notes that England property prices increased by 10.0% in the year to March 2016.

Compared to the rest of the UK, the figure is relatively similar. The overall difference in the inflation being that of 1%.

Northern areas of England see the lowest increase in annual prices compared to the rest of England. On average, northern regions only see a 5% increase in property value. While these figures remain lower than other areas of England, they are still record annual figures for the North.

Invest in property developments in South East England

These statistics show that investing in property developments in the South East of England will provide the greatest financial return.

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If you were to exclude figures from the South East of England from the annual reporting, there would only be a 5.9% increase in English house prices.

These figures show the importance of the Southern market for the rest of the UK.

Source: Office for National Statistics

South East England house prices increased by 12.2%.

Married with figures of 13.0% and 12.1% for London and the East respectfully, these are the three dominant markets of the UK.

The strength of South East property

Average property prices in March, in the South East, were above £350,000. This compares favourably to the rest of England, where the average house price for March came in at £300,000.

South East England investment is stronger than ever before. Improved commuter links with London have meant the demand for property is constantly increasing. Supply, in comparison to demand, is dwindling.  Already the relationship between supply and demand is strained, but as time goes on this void grows ever larger.

Over the next ten years the gap between supply and demand will only get bigger. With that in mind, house prices will continue to rise.