London's Rising Property Prices
London’s asking property prices are rising across all boroughs, setting a new high.
The return to city life has resulted in double-digit growth in seven boroughs, and houses in the capital are selling at the quickest rate in a year.
According to the Rightmove House Price Index, the average London home now costs £677,110.
House prices in London have increased to new highs across all boroughs this month, with the average asking price now standing at £677,110.
According to Rightmove’s latest property market data, this represents a 6.6 percent gain year over year and a 1.9 percent increase from last month.
After two years of low interest, the termination of Covid-19 limitations, along with the reopening of offices and cultural attractions, has enticed purchasers back to the city.
The boroughs in the outer boroughs have experienced double-digit growth.
According to borough data, Kensington and Chelsea has the largest annual increase, with home values climbing 13.8% to £1.74 million, making it London’s most expensive borough.
The return of wealthy international purchasers to the premium London property market in recent months has fueled demand for the royal borough’s multi-million-pound residences.
Property in the capital is selling at the fastest rate in the last 12 months, thanks to rising demand as more people return to city life and limited housing stock.
Last year, it took an average of 64 days to find a buyer, but now it only takes 51 days – or less than two months if you’re lucky – to get that coveted SSTC (sold subject to contract) stamp.
“The economic headwinds of sharply rising inflation and mildly rising interest rates are being kept at bay by the even greater tailwind of property market momentum that has carried over from last year,” said Tim Bannister, Director of Property Data at Rightmove.
“As the economy continues to deteriorate, our current market figures indicate that your property will sell faster than ever before, and most certainly for a record price.”
“It can’t and won’t go on like this, but with the demand and supply imbalance so out of whack, any significant slowdown appears to be approaching gradually and will be a soft rather than a violent landing.”
House prices in the United Kingdom have scored a hat-trick.
For the third month in a row, national house prices have risen to a new high, with asking prices up 9.9% from a year ago to £360,101.
The £19,082 price increase over the last three months is the biggest three-month price increase ever recorded by Rightmove.
Because of the quick pace of sale in the UK – 33 days on average, compared to 67 in the more usual pre-pandemic market of 2019 – homes are attaining 98.9% of their asking price, with 53% of those who sell doing so at or above their final advertised cost – two more Rightmove records.
Now is the time to take advantage of the seller's market.
The rate of increase in UK house prices is slowing significantly, as expected, due to economic headwinds such as rising interest rates and higher living costs, with this month’s 1.6 percent gain being lower than the previous two.
As is customary, some month-to-month price drops are expected over the summer, but they are unlikely to be considerable given to the ongoing supply and demand imbalance.
Mr Bannister explained that “the fast speed of the market and competitiveness among bidders when making an onward step will prevent some owners from listing their property for sale.”
“However, if you can get both a rapid sale and a quick purchase, it’s a lot less stressful than dealing with the uncertainties of a slower market, when finding a buyer for your own property can take months or never materialise.”
“This month, over 125,000 new sellers took advantage of the great sellers’ market, but more are needed in all areas and in all property sectors to fulfil high buyer demand.”
Barking and Dagenham, in the east of the city, is the most cheap of the city’s boroughs, with an average rent of £1,500. “The economic headwinds of strongly rising inflation and modestly rising