The UK housing market is running along at full speed currently and the growth in house prices is proof. London is typically the epicentre of all growth slow or otherwise, and increase in property price is no exception. Inflation of cost is happening in the capital city with a rippling effect which spreads outward gradually slowing as the distance away grows. The average price of a property in London now sits at more than £500,000. This is in great contrast to the average price overall, which is just more than £200,000, according to Halifax.

Although price growth is taking place in leaps as opposed to steps in the capital city, price growth by region tells a different story. Proximity to the capital city is the pivotal factor in the increase of property value. The areas closest to London are affected most by the growth or demise in pricing. As the distance grows from the city, inflation affects the area to a lesser degree. Pricing during the bear market have affected prices by more than 70% in the city, whilst the overall inflation rate in pricing is coasting along at around 10%.

The area furthest from the city borders, Scotland, has been affected the least by growth in housing prices.

House price growth has affected the market and the forecast for the future unlike most other influences. Remortgage activity has not slowed, only sped ahead in all regions. Lenders are seeing demand for remortgages overtake most other types of transactions, and this is expected to continue until the time of increase in interest rates becomes clearer. UK house owners are applying for remortgages in flocks to obtain a fixed interest rate and obtain security for the future.