By Daniel Hunter
House prices across the UK are set to rise faster than in London, according to housing analysts.
The Centre for Economics and Business Research (Cebr) forecasts house prices to rise 1.5% this year, but prices in London to fall 3.5%.
London has consistently outperformed the whole of the UK for a number of years in what the Cebr described as "years of over-performance". It will be the first time since 2009 that UK prices have grown faster than in London, the Cebr said.
But the fall in prices in the capital is not expected to last long, with prices set to rise 2.7% in 2016 compared with 2.3% across the country.
Nina Skero, a Cebr economist and the author of the report, said: “Outside of London, the outlook for house prices this year has improved after a few months when the market appeared to be coming off the boil. December’s stamp duty changes, as well as rising household incomes, are lifting prices in many parts of the UK.
“In London, however, we expect prices to decline by 3.6%, driven by a significant weakening at the prime end of the market. A potential mansion tax, reduced overseas interest and hefty new stamp duty rates have hit demand for high value property.”
