Asking prices in London hit a new record high for the second consecutive month in March, climbing by 3.6 per cent (£19,818) and recording year-on-year growth of 15.9 per cent – the highest since November 2007, according to the latest Rightmove House Price Index.
The Index also shows an upward trend and year-on-year rise of 13 per cent in the number of properties coming to market in London in 2014, with demand still outstripping supply and fuelling prices. There is also evidence that the London ripple effect is continuing to spread into commuter belt and second home territory, creating upward price pressure in the southern regions.
The average price of property coming to market in London is now £572,348, a jump of £78,713 compared to this time last year and a level not seen since November 2007, before the credit crunch.
Miles Shipside, Rightmove director and housing market analyst comments: “Records keep tumbling in the capital, with a new asking price record being set in London for the second consecutive month. With the annual rate of increase now running at nearly 16 per cent, buyers in the capital considering purchasing an average property will see a price tag nearly £80,000 higher than this time last year. The last time they were going up at this rate was over six years ago, shortly before Lehman Brothers went under and the credit crunch really kicked in.”
Shipside adds: “A strong ripple effect is spreading out from the capital, causing a new wave of record prices for property coming to market in the South East, the South West and East Anglia. Some of this will be buyers who will commute into London, while others will be those looking to invest some of their London property gains further afield, perhaps with a second or retirement home in East Anglia or the South West. Unfortunately for those looking for better value and affordability in the rest of the south, new seller asking prices are on the up there too.”