With more certainty as Brexit is extended seller asking prices are 2.7% higher reflecting stronger demand in central London.
According to the latest house price index from Rightmove property values are 2.7% higher for the month with asking prices up £20,249 for central London averaging £757,773.
The extension of Brexit until October has occurred with the property moving season giving some relief to the uncertainty and a boost to the housing market.
Mid-size properties of home movers are out-performing the market rising £18,502 or 2.7% for April with current average prices of £696,368 and the only sector to be positive for the year up 0.3%.
This compares with Greater London where asking prices are 1.1% higher for the month at £614,250 although down over the year by -2.2%.
Lower London house prices for the year is good news for first time buyers as they would require a lower deposit or smaller mortgage to get on the property ladder.
House prices bounce back in London
Over the last month house prices have bounced back in London as the spring moving season for home movers begins with many boroughs up over 1.0% with strong buyer demand.
The following table from Rightmove shows the house prices for London Boroughs and the monthly change to April 2019.
| Borough | House Price | Monthly change |
|---|---|---|
| Lambeth | £627,469 | 3.8% |
| Southwark | £645,549 | 2.6% |
| Islington | £761,455 | 2.0% |
| Wandsworth | £812,750 | 1.9% |
| Sutton | £459,418 | 1.9% |
| Newham | £408,920 | 1.4% |
| Croydon | £432,033 | 1.4% |
| Greenwich | £441,685 | 1.3% |
| Barking and Dagenham | £313,688 | 1.1% |
| Enfield | £453,923 | 1.1% |
The borough of Lambeth has seen house prices rise 3.8% with average property values of £627,469 with Southwark up 2.6% and house prices of £645,549.
With higher house prices in the capital buy-to-let landlords will look to outer London for affordable properties to help improve rental yields.
Strong growth was experienced in other boroughs with Islington rising 2.0%, Wandsworth and Sutton up 1.9% for the month.
Rising house prices allows the equity release mortgage buyer to access money and use this to repay an interest only mortgage, for home improvements or help your children start or expand a business.
Miles Shipside Rightmove director and housing market analyst said, more sellers of expensive homes are coming to market in time for the traditional Easter pick-up, and there are tentative signs of market recovery.
Affordability limits and Brexit uncertainty has resulted in here being 12% fewer properties on the market than this time last year and agreed sales lower by 5.6%.
Second steppers driving the market
Second steppers with larger three-bed and four-bed properties are outperforming other sectors as home movers are driven by the need for more space or being closer to schools outweighing Brexit uncertainty.
Mr Shipside said, properties in this mid-sized sector offer families more bedrooms, more space and their choice of schools, admittedly at a hefty price jump.
It gets harder with time and still-growing children to postpone a move that they may have already been delayed for a year or two while waiting for Brexit clarity.
The number of sales agreed by second steppers is down by 5.1% year-on-year and slightly better than for the whole of London with an average drop of 5.6%.
Some boroughs have seen large drops in house prices over the year with such as Kensington and Chelsea in central London lower by -7.0% with an average value of £1,516,867.
Other boroughs are lower with Hackney down -5.8% followed by Tower Hamlets -5.7% lower with Merton -4.3% down and Barnet with house prices dropping -4.1%.
It may be easier for remortgage buyers in these boroughs to stay in your existing home if you can until property values recover and avoid the costs of moving including paying stamp duty tax.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage monthly cost calculators, equity release calculator and property value tracker chart.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise or even buy a more expensive home.
