The average price for a London home has broken through the £600,000 and has almost doubled in price since 2009.
Based on the Land Registry data, LSL which owns Your Move and Reeds Rains estate agents has produced a report showing London property prices are 11.0% higher for the year to March 2015.
For Greater London the average property price is now £600,625 increasing by £59,605 in the last year and has almost doubled since 2009 when the average price was £321,917.
This continued rise in house prices means first time buyers and home movers would require a larger deposit or higher earnings to buy.
Across England and Wales house prices have risen by 8.9% over the last year to reach an average of £298,030 in March this year compared to £204,875 in 2009.
Strong price growth for London boroughs
Over the past seven years, prices in eight of London’s boroughs have doubled in value with the biggest increase from Waltham Forest up 113% to an average of £430,704 for a property.
Higher property values for remortgage buyers living in London boroughs give them an opportunity to release capital which they can use to improve their home such as adding an extension, new kitchen or bathroom.
The following shows the top 15 boroughs in London for highest average property values and growth over the last year:
| Area | Annual Changes | Property Values |
|---|---|---|
| Kensington and Chelsea | 10.6% | £1,908,526 |
| City of Westminster | 4.3% | £1,320,299 |
| Camden | 23.8% | £1,073,841 |
| City of London | 0.1% | £940,570 |
| Hammersmith and Fulham | -2.4% | £899,197 |
| Richmond Upon Thames | 6.8% | £831,184 |
| Wandsworth | 14.1% | £773,294 |
| Islington | -0.3% | £714,529 |
| Southwark | 20.0% | £645,725 |
| Lambeth | 11.7% | £616,504 |
| Hackney | 13.9% | £600,761 |
| Haringey | 14.3% | £594,528 |
| Barnet | -1.7% | £592,453 |
| Ealing | 11.9% | £573,480 |
Adrian Gill, director of Your Move and Reeds Rains estate agent has said homeowners, such as home movers and remortgage buyers have benefited from the acceleration of home values in April.
Higher property values allows the equity release buyer to access money to pay for care at home or reduce inheritance tax owed by your beneficiaries.
Following the decline in demand from buy-to-let landlords and second home buyers after the rush to beat the stamp duty tax in March, a severe shortage of properties has increased competition between buyers.
This has produced the fastest annual growth in property prices since December 2014 with London prices leading the way with a 11.0% rise year-on-year.
Affordable areas rising the fastest
It has been the more affordable areas of London that have seen the steepest increase in house prices, says Mr Gill, as the capital’s residents seek out cheaper properties.
Areas such as Barking & Dagenham in East London are higher by £45,958 or 19.6% for the year to March 2016 with average price at £280,369 with demand from first time buyers and home movers.
In South East London Bexley has seen property prices rise 17.9% or £51,656 for the year averaging £339,522 or in North London, Enfield where house prices are £66,710 higher or 18.0% and now averaging £437,222 for a home.
This is greater growth than England & Wales where property prices are higher by 8.1% or only 4.9% annually excluding London. The average price of a house is now £294,969 or £24,280 more than a year ago.
Mr Gill said the rise in home values in London mean that Sadiq Khan will now face a serious challenge to deliver his promise of increased affordable housing in the city.
What are your next steps?
Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth for home or garden improvements and holidays.
At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator. Start with a free mortgage quote or call us and we can take your details.
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