London property prices up 7%

The cost of buying a home in London is higher than ever following a seven per cent increase in property prices in the capital over the last year.

According to the latest figures from the Land Registry, the average London home is now worth £364,574 compared to the UK average of £161,605.

The latest annual increase is likely to put the possibility of owning a property even further out of reach for many would-be first time buyers in London.

In turn it could provide a boost to lettings in London as more and more people turn to the rental market because they cannot afford to buy.

The capital's house price rise is well above the increases seen in other UK regions. The East of England, for example, saw the second largest yearly rise at 2.2 per cent.

In the North West, the North East, the East Midlands and Yorkshire and the Humber, prices actually fell over the 12-month period.

Looking at London specially, there was only one borough to experience a decline in home values during the year to October 2012, and that was Redbridge with a modest 0.1 per cent drop.

All other boroughs saw increases, with Kensington and Chelsea and Westminster coming in at the top of the table. Prices in these areas rose by 15.9 per cent and 14.6 per cent respectively.

Meanwhile, data from Nationwide building society has shown that house prices in London are now just two per cent below their pre-recession peak in 2007.

This particular house prices index, however, puts the average cost of a home in the capital lower than the Land Registry at £301,168.

It has Westminster as the most expensive area and Barking and Dagenham as the least expensive. It also finds that Wandsworth is the area with the strongest annual price rise.

Posted by Ben Carter
 

Published 29th November, 2012

© 2012 Estates IT Limited