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London Property Market 16 March 2016

Chestertons Residential Observer - March 2016

House prices rose more steeply than December, and for the fifth month in a row, to reach 13.9% in the year to January.

  • The average house price in London now stands at £530,409, according to the Land Registry.
  • Of London's boroughs, the strongest growth was recorded in Hillingdon (+15.5%), followed by Enfield (+15.2%). The traditional prime central boroughs meanwhile continue to lag behind with Camden (+3%), Islington (+5.5%) and Kensington & Chelsea (+5.7%) seeing the lowest price rises.
  • Prices fell by 1.3% per square foot in certain central London locations across 2015 and the amount of property transactions for these areas decreased by 22%, according to LONRES data.
  • Research from the London School of Economics and Santander forecasts that around 25% of London homes could be worth more than £1m by 2030. Currently around 300,000 properties in the capital are worth more than £1m.
  • One in four homes earns more than its owners, according to research from the Halifax. The number of areas where house prices are outpacing earnings over the past two years has increased significantly over the past year: from 73 out of 384 (19%) a year ago to 108 out of 380 (28%). Seven out of the top ten locations are in London with Harrow, Greenwich and Hillingdon leading the pack.
  • In the first 11 months of 2015, Land Registry data show that only 8.3% of total sales were valued at more than £1m while sales of more than £2m accounted for just 1.9% of all transactions. In contrast, 67% of sales were for £500,000 or less.