Updated: Nov 22, 2018
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.
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