Bidwells new research findings supports an earlier report from the Nationwide Building Society which concluded that London house prices had risen by 25.8% over the past year in spite of the recent reduction in the rate of increase in house prices in the capital.
"Despite the recent market correction, the overall national, London and Cambridge market trend is an increase in house prices across the board," said Chris Carey, Partner, Bidwells.
"Whilst it is true that international investors have fuelled prices in London, the Home Counties and Cambridge in particular - where large town houses have surpassed previous peaks set in 2007 by some 20-27% - have seen very significant price rises over the last 12-18 months. The average house price rise in Cambridge was 11% with prime central city property reaching 20% in the last 12 months.
"That's probably because affordability is now such a serious issue for most people living in London, that they have started making lifestyle choices about where they live and how they live. From our experience, affordability, accessibility (to London) and quality of life now appear to outweigh the desire for a home in London.
"Last year for example, 84,000 people in their 30s and 40 moved out of London taking 65,000 children with them."
The new Bidwells research is further endorsed by data from the Office for National Statistics which concluded that houses sell faster in Cambridge than in any other part of the country.
The researchers concluded that it takes 27 days on average for properties in the University City - home to many science and technology firms - to sell, quicker than the average 65 days across the UK.
Whilst the fear of another 'housing bubble' did prompt the Bank of England to introduce new measures to correct the market - such as a cap on 4.5 times lending - Carey believes that natural market forces will create inherent self-correction mechanisms, but the attraction of long term capital growth in the property market will result in a sustained long term rise in house prices.
About Bidwells
Established 175 years ago, today Bidwells is one of the UK's leading property consultancies. We employ almost 500 people in 13 offices across England and Scotland and provide a full range of services across the Commercial, Residential and Rural sectors.
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Housing price trends confirm market still bullish - take a long term view, says Bidwells
22 July 2014
New research from Bidwells, one of the UK's leading property consultancies, confirms that house prices accelerated faster in the last three months of 2013 and the first quarter of 2014 than at any other period in almost a decade.