According to Knight Frank’s South East residential development review, a combination of wealth generation, severely restricted land supply and sustained market confidence are diminishing the gap between new build prices in London and the rest of the South East.

In the past three years, new build prices have risen substantially with property in an increasing number of the South East’s towns achieving over £350 sq ft.

The report highlights towns that have witnessed the highest growth in London commuter residents such as Guildford, Sevenoaks and Tunbridge Wells. Historically, commuter towns were those within an hour’s journey of the capital, but increasingly London workers are willing to trade proximity to work for rural, and particularly coastal, residences further afield.

A severe lack of land supply, exacerbated by Special Protection Areas in the Thames Basin Heath area, has led to rising land values and lower margins for house builders. As a result mergers and acquisitions have risen and even the larger house builders are becoming involved on smaller schemes.