As you all know, house prices had began to increase since the beginning of 2014, but this increase has been unproportionate to say the least.
UK house prices ended 9.5% higher than they started in 2014, but the strength of increase was mainly in London and the market could flatline in 2016, property firm Savills said on Tuesday, as it revised its forecasts for the next five years.
Just to give you an example:
Here are 2 properties that were listed on Zoopla this week, both 1 Bedroom, mid-terraced houses. One in Leeds and the other in London.
A 1 bedroom house recently refurbished with new bathroom and kitchen, located close to Leeds City Centre in Armley.
A similar sized 1 Bedroom property on Clifton Road, South Norwood, on the outskirts of London.
This is a simple comparison between 2 properties, one on the outskirts of London the other just outside Leeds City Centre in Armley, the price difference is amazing, £62,500 in Leeds and 4x times as much in London at a staggering £250,000.
The property price increase does not only affect home buyers but also people renting as with house prices, rents also rise which will push more people out of London.