The latest details provided by the UK Housing Market Observatory at Lancaster University Management School has confirmed that the increase of London house prices in the first quarter of 2016 was 1.2%, which means that it has slowed down and is currently almost three times lower than in the same previous period.
Therefore, it is important to highlight that UK property prices are still at historical highs although there are some differences in the rates of house price inflation across regions.
Two reasons that could explain this fact could be the rise in the uncertainty of global economic conditions, especially in the East; and the incorporation of extra 3% stamp duty on additional property acquisitions from the 1st April.
Other areas close to London have registered a considerable Price raised in comparison with the previous quarter: Outer Metropolitan (3.1%), Outer South East (2.5%) and East Anglia (4.1%).
This study stipulates that this occurrence is in line with the so-called ripple effect, suggesting that substantial house price increases in London over the last few years spread out to surrounding regions over time and have a leading effect on the UK housing market.
The objective of The Observatory is to control the changes in prices in the UK regions, and analyse each quarter alongside the house price data.