Countryside soars as Londoners flee overpriced capital

Commuter-belt builder Countryside is selling homes for more than half a million pounds each on average as Londoners are priced out of the centre of the capital, chief executive Ian Sutcliffe said today.

Sutcliffe — who floated the firm in February — said areas such as Acton in the west, Enfield to the north and the A13 corridor heading east were in the strongest demand as average selling prices for private homes jumped a startling 47% to £508,000.

Prices were skewed by a 25% sales rise at its housebuilding division — which sells more expensive homes than its regeneration arm — in the six months to March 31. But even adjusting for that, asking prices are 12% ahead of last year, Sutcliffe says, amid demand for more affordable homes.

“Strength in the suburbs and commuter towns is what we are seeing in our numbers. Most of the central London market is simply becoming unaffordable for local people,” he said.

Sales for cheaper flats in London have also been boosted by the expansion of the Help to Buy scheme offering a 40% deposit for buyers. Shares rose 6.25p to 237p — more than 5% above its 225p price at flotation.

Fellow builder Telford Homes, meanwhile, gained 11.1p, or 3%, to 348.1p after it said results would be “slightly ahead” of City hopes.