Commuter Belt House Prices 'Set To Soar'

Home buyers forced out of London are pushing up prices elsewhere in the South East, according to property website Rightmove (LSE: RMV.L - news) .

Analysis by Rightmove and Oxford Economics forecasts that the South East will see prices increase by 37% over the coming five-year period, ahead of London at 33% and 30% across the nation.

Areas with good London-bound train links would benefit from those priced out of the capital.

Rightmove director Miles Shipside said: "Those looking for price appreciation in the country should seriously consider the South East, and some may wish to fine-tune their search to the three top locations of Southampton, Brighton and Luton."

Rightmove said the latest price data across England and Wales indicates owners were asking 2.6% more for homes in September compared to August.

Rightmove said the average asking price was now £271,669.

It (Other OTC: ITGL - news) said the increase was the slowest rise for this time of the year since 2008.

Meanwhile, the brakes continue to be applied on some mortgage lending.

The Council of Mortgage Lenders (CML) said the total approved loan figure for England and Wales fell by 1% last month.

It estimated combined loans of £17.8bn during September, down from £18bn in August.

Although it was an estimated month-on-month decline, the CML said it was still 10% higher than the same time last year.

The CML, which represents nearly all mortgage lenders, added that in the three months until the end of September mortgage lending totalled £55.5bn.

It was 8% higher than the previous quarter and 13% higher than the same period last year.

The market has cooled slightly since lenders were forced to employ mortgage affordability stress tests in late April, helping to cap higher loan-to-income ratios (Other OTC: UBGXF - news) .