London house prices increase by over 10% this month

October saw a huge increase in the buying price of houses in the UK capital. London house prices increased by 10 per cent this month, adding more pressure to a market that still has too few properties to meet the demand of buyers. Those looking to live in in the city could benefit from the rental options that are available.

Compared to September, the average house price in London skyrocketed by £50,484, a 10.2 per cent jump from the previous month's figures, according to a Rightmove survey. This means that average price for a home in the capital has reached an astronomical £544,232, pricing many people out of the market.

This latest price jump means that annual growth for London residential property has reached 13.8 per cent, which is five times higher than the UK's rate of inflation. Despite government schemes and initiatives many people wishing to own property in the capital are finding that it is difficult to do so, as mortgage repayments and deposit amounts do not line up with income. 

For those looking for a new home in London, renting could offer a more realistic option. Although rental prices are increasing as the drive to live and work in the city is increasing, they are still more affordable. Finding a property to rent in London through an Estate Agent means that you are able to ensure a home is worth the money and is in good condition when you move in.

Despite the massive rise in housing prices in London, the rest of the UK has seen prices stay steady or actually fall. It seems that the price bubble has not expanded beyond the capital, where foreign investment has helped to drive prices up. However, the continued investment in the city means that it remains one of the most popular and vibrant areas of the country, providing a number of benefits for those that live and work there.    

Published 31st October, 2013

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