East Mids house price growth could surpass London, says report
House price growth in the East Midlands could surpass London over the next five years, according to the latest house price projections analysis carried out by KPMG UK.
The analysis revealed that the house price growth in the East Midlands was projected to grow at an average of 3.4% over the next five years. Meanwhile, the North East and London were projected to grow the least, at 1.9% and 1.5% on average respectively.
Ian Borley, East Midlands senior partner at KPMG, said: “The housing market in the East Midlands reflects the strength of our local economy and the Midlands as a region overall. Our analysis reinforces the importance of local infrastructure and connectivity, with billions being invested to improve roads, rail lines, schools and hospitals in the region, and these continue to be crucial drivers for house price growth.
“A number of towns and cities across the East Midlands are undergoing regeneration, deemed ‘up and coming’, and already these are noting rising house prices. These factors drive perceived attractiveness and ultimately create a virtuous circle of growth. Regional business hubs like Derby, Leicester and Nottingham are benefitting from the exodus of talent leaving London to start a life where the job prospects are good and the cost of living is cheaper.
“Policymakers need to recognise the impact rejuvenation and community can have on making areas attractive. As is evident, eyes should be fixed on the regions as much as on London.”
House Price Growth 2018 – 2022 (highest to lowest)
| Region | Average annual growth in national house prices, 2018 – 2022 |
| South West | 4.3% |
| West Midlands | 3.8% |
| South East | 3.7% |
| Northern Ireland | 3.7% |
| East of England | 3.5% |
| East Midlands | 3.4% |
| Scotland | 3.3% |
| North West | 2.4% |
| Yorkshire and The Humber | 2.3% |
| Wales | 2.2% |
| North East | 1.9% |
| London | 1.5% |
