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London Property Market 16 December 2015

Chestertons Residential Observer - November 2015


  • Average price increases accelerated to 9.6% in the year to September. Annual prices are now once again rising faster in London than in any other region of the country, and the average house price in the capital is now £499,995.
  • Newham (+13.6%) is the borough with the strongest annual price growth, while Kensington & Chelsea prices rose fastest when compared to the previous month – though at just 2.3%, it remains among the slowest annual growth in the capital this year.
  • "There's a huge gap between what is happening in the 'prime central London' market and the rest of the city, with the central boroughs experiencing the weakest price rises. The rapid month-on-month rise in average London prices is likely to be a bit of blip reflecting the fact that the early months of autumn are the traditional peak time for property sales.

Nick Barnes, Head of Research

National & Regional

"The relative shortage of houses for sale means there are many more prospective home-owners than houses to buy. Prices will probably rise fastest in the entry-level bracket with high demand from first-time buyers. In the short-term there may be a rush from buy-to-let investors or secondhome buyers seeking to make a purchase before Stamp Duty rises by a further 3% from April 2016.

The Chancellor has announced new measures to help first-time buyers on to the property ladder, committing the Government to building 400,000 new affordable and starter homes over the next five years, but it remains to be seen how many of these new homes will be completed quickly."

Nick Barnes, Head of Research

  • House price rises across the whole of the UK sped up in September, rising to 5.3% compared to 4.2% in August. Outside of London, the South East saw house prices rise the most at 8.5% in the year to September, overtaking the East of England at 8.3%.
  • Excluding London, property prices in the countryside in the UK are, on average, 22% higher than in urban areas Despite this, the gap between "town" and "country" prices is narrowing as prices are rising more quickly in urban areas. Between 2010 and 2015, the average price of a home in the countryside rose by 13%, compared with an average increase of 23% in towns and cities.