UK and europe property "not so different after all"

UK and European housing markets are "not so different after all," according to new research by Savills.

While the UK's property market has long been presented as different to the rest of Europe, unique in its structure and process, it appears that the country's property market has become more like its continental cousins in recent years: the recent experience of boom-bust has differed between countries, but owner-occupation rates and average house prices have converged.

"We are now remarkably similar to other countries in Europe in terms of typical house prices and rates of owner occupation (which are now actually below the EU average)," explains Yolande Barnes, Director of Residential Research at Savills.

"As international markets adjust to the new realities of finance and affordability, it would seem that sub-regional geographies vary far more within nations than between nations. This means that average prices are becoming increasingly meaningless and conceal a huge range of different experiences."

Indeed, London and Paris are behaving more like each other than like other regions in the same country; prime international markets across the globe have more in common than those cities have with their provinces.

The findings have a serious impact on industry reports and figures going forward, as well as those looking to invest.

"We have never had to look more closely at local demographics, economics and the migration of equity in order to assess future demand and viability," adds Barnes. "All this local diversity means there never was a worse time to be looking at ‘one size fits all' policies to stimulate housing construction, private renting or regeneration. [In the UK] the issues for Newcastle are very different to Newbury's and different again to Newham where even East London is proving a very different market to West London."

As a result, Government review bodies such as Montague are going to have to be "well versed in the complexities of the market to make their informed recommendations", concludes the report.