While prices of prime properties in London have declined amid worries on the global economic downturn and the United Kingdom's probable withdrawal of EU membership, prices of properties in towns around the city have grown.
As reported by The Guardian, Slough, Luton and Reading are the latest property hotspots in the country. According to figures from the Land Registry, property prices in these three commuter towns recorded a rate of 19 percent per year. Slough in Berkshire has an average price of £236,000, while Luton in Bedfordshire has average of £169,000 and Reading £270,000.
Meanwhile, Essex borough of Thurrock has an annual price growth rate of 17.2 percent with an average price of £194,000. In Wales and England, the average home price in February stood at £530,368 in February, a 6.1 percent increase from last year's figures, according to the report.
In another news, Financial Times reported that London's luxury property market is seeing prices fall by 6.7 percent from the peak in 2014.
Lucian Cook, head of U.K. residential research at Savills, said the city is unlikely to see price growth this year. This is because of several factors including the changes in stamp duty that increase tax burden to homebuyers, the upcoming mayoral election and the country's EU referendum, not to mention the historic levels of price growth.
In the first quarter of 2016, prices were down by 0.8 percent, driven by concerns on global economic volatility and the country's exit from the EU. This comes despite the rise in costs caused by buyers beating the deadline of the implementation of the stamp duty changes come April 1 where buyers of second homes and buy-to-let properties will be charged an additional 3 percent tax. Meanwhile, Savills data showed that "outer prime" areas of London remain relatively expensive, with prices flat in Q1 2016 following the 2.6-4.2 percent increase in 2015.
