Updated: Aug 18
Following our analysis of the relative value of London Boroughs, Ludgrove has assessed Detached Houses within commuting distance of London. To re-cap our study does not try to determine whether property prices in a particular area are cheap in absolute terms, rather whether they under or over-valued compared to where they have historically traded versus London. By way of an example, Detached Houses in the region of South Bucks have historically traded at +152% premium to London property prices on average since 1995. They are currently trading at a +119% premium, and therefore they are under-valued by -33% compared to their historic average. The results are summarised below:
The study reveals a number of interesting observations:
As a subset, Detached Houses within commuting distance of London offer great value. Indeed the scale of the undervaluation is evident when we look at the group's trading range since 1995 (see table below). The group has traded between a 68% and a 141% premium to London over the last 23 years and is currently trading at a 80% premium, very near an all-time low.
South Bucks, Surrey Heath and Elmbridge offer excellent value with discounts ranging between 29% and 33%.
Discounts in Tonbridge Wells (average price £776k) and Epsom and Ewell (£811k) are poor compared to other areas.
The table below shows the full analysis of each Borough ranked by Average Property Price:
If you'd like to find out more about where to find value in the London & South East property market, feel free to get in touch with Ludgrove.
43 Berkeley Square
London W1J 5AP
Tel: 0207 889 2860
Disclaimer: Ludgrove Property Limited is not authorised or regulated by the Financial Conduct Authority (FCA) and we do not provide any financial or investment advice. We recommend that any property investor seeks appropriate professional advice before entering into any contract, and we would also advise that the value of any investment can go down as well as up and that you might not get back what you put in. You may have difficulty selling a property investment at a reasonable price and in some circumstances it might be difficult to sell at any price. We would urge you not to invest unless you have carefully thought about whether you can afford it and whether it is right for you, and if necessary to consult with a professional advisor in accordance with the Financial Services and Markets Act 2000. All information is provided strictly as a guide only, is subject to change without prior notice and does not constitute an offer of investment. This website should not be regarded as an offer or solicitation to conduct investment business, as defined by the Financial Services and Markets Act 2000. Investors who are resident in or citizens of countries other than the United Kingdom may be subject to local restrictions. In particular, no offer or invitation is made to any US persons (being residents of the United States of America or partnerships or corporations organised under the laws of the United States of America or any state, territory or possession thereof), who are excluded from the services offered in this site. The information on this website has been obtained from sources which we believe to be reliable and accurate, but without further investigation this cannot be warranted.