House prices in Milton Keynes have leapt by a whopping 11 per cent so far in 2013, according to one estate agency with seven offices in the city area.
Connells believes price increases are being driven by huge increases in prices being seen in London, which is encouraging people to live in more affordable commuter areas outside the capital.
Company area manager Charles Hart said: “We have seen a definite change in the property market this year with rising prices and greater confidence from buyers.”
Connells confirmed that the increase is based on actual sales of property rather than “asking prices” which is what home sellers look to make. And although the company didn’t disclose how many homes were sold to make the figure, it believes it to be credibly representative of what is going on in the market.
A spokesman said the price increase was largely reflective of what he called ‘the London influence’. “As you get closer to the capital house prices increases have been larger with London itself seeing huge hikes this year.
“We can’t comment on employment figures but certainly many of our buyers are attracted by either working in Milton Keynes or living there and commuting to London for work so this is probably playing into price increases so far this year.”
Connells believes prices will continue to rise and this means if people are looking to move up the ladder, now is the time to do it because the price gap could widen by thousands of pounds in the next few months.
The company looked at a development in the Oak Grove area of Milton Keynes and said in six months’ time prices could be at £144,300 for a one-bedroom apartment compared to £299,700 for a three-bedroom, a difference of £155,400. That compares with a £140,000 price gap now.
Recent figures from the Office of National Statistics state annual house price inflation across the UK was at 3.3 per cent in July 2013, the strongest increase in six months.