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London Property Market 21 April 2016

Residential Observer - April 2016

  • House price rises slowed down from 13.9% in January to 13.5% in February. However, 22 out of London's 32 boroughs actually saw average price rises gather pace.
  • Of all the London boroughs prices rose fastest in Hillingdon (17.1%) and slowest in Camden (3.6%).

  • The average London house price is now £530,368. The highest prices are found in Kensington & Chelsea (£1,396,753) and the lowest in Bexley (£323,746).

  • Only 15% of single Londoners under the age of 35 own their home, compared to nearly 40% of couples3.

  • The average London worker would need a 266% pay rise to be able to afford a mortgage for an average property in the capital (assuming an average price of £526,085 and average salary of £32,838 a year).

Home ownership a pipe-dream for many as some London house prices rise by £500 a day

Another month rolls by and still no sign of homeownership in London becoming more affordable. According to the Greater London Authority's own figures, only 6,856 properties defined as affordable were built in the capital in 2014-15, down from 6,914 the year before. As a percentage of all the homes built in London, affordable housing has fallen to 25%, down from 39% four years ago. Hardly surprising, then, that prices continue to spiral upwards – by more than £500 a day since the turn of the year4.
Some analysts have predicted a sharp correction now that the 3% stamp duty surcharge is in place but, unless there is a significant increase in the number of homes coming to the market, competition remains very high and prices will only continue to move one way.