Greater London property prices increase by 5%

Permalink: Greater London property prices increase by 5%
by Kay Murchie

According to information released yesterday by Rightmove.co.uk, the average asking price in London smashed through the £400,000 barrier for the first time, reaching a record of £403,637 – an increase of 5% this month. Annual average asking prices in London are up by 20%

Rightmove said this upward trend was due to an increase of higher value 3-bedroom properties coming onto the market to beat the home information packs (Hips) deadline on 10 September.

It is anticipated that the average asking price will return to a lower level when Hips are launched for 2-bedroom properties, potentially spurring an increase in lower value homes on the market.

A spokesperson for Rightmove remarked that so far this year, record price levels have been spurred on by the health of the economy in the south of the country and particularly in London, where buyers can afford to pay more leading to demand outstripping a limited supply.

The spokesperson added that these figures are a reflection of the phased launch of Hips encouraging a rush of higher value 3-bedroom properties to beat the deadline and skew average price growth.

In spite of the rises, the trend overall is one of a slowing market. A property is now on the market for an average 86 days, the highest October level since 2002, indicating a slowdown.

London is a major capital so prices should be strong over the long-term. Rightmove concluded that the best performing boroughs in London were Hammersmith & Fulham and Camden, where prices were up 8.8% and 6.6% respectively. In comparison, prices fell by 0.5% in Kingston-on-Thames.