The average asking price of a London home is now more than £500,000, according to recent research by the UK’s leading property portal, which showed that the average price in the capital in May rose month on month by 3.1 per to a record £509,870.
This means a typical home in London is now more than twice as expensive as the national average in the UK, which is £249,841, after a small rise of 2.1 per cent in May. The same research, conducted by website Rightmove, showed that UK house prices have had the strongest start to the year since 2004, increasing by 9.1 per cent in the five consecutive months from January. This surge has been driven by record price growth in London, the South-East and East Anglia.
“Last year’s activity was crazy, this year’s is ridiculous,” commented one London agent, adding that “multiple offers and sealed bids are the norm”. It is thought that upward price pressure in London and increased activity is being driven by a shortage of fresh stock on the market and a flurry of deposit-gifted first-time buyers trying to get on the housing ladder before prices ratchet up even more.
As expected, Rightmove’s research highlights huge differences in asking prices between boroughs in London. Kensington and Chelsea borough remains the most expensive, with the average price now £2,371,633, compared with £2,082,767 a year ago. Next is the City of Westminster, where the average asking price is £1,669,590, compared with £1,488,892 a year ago. The third most expensive borough is Camden, followed by
Hammersmith and Fulham, Brent, Islington, Wandsworth, Richmond-upon-Thames, Kingston-upon-Thames and Barnet. The borough with the lowest average asking price is now Barking and Dagenham.