Property prices in Greater London have surged ahead up 2.1% over the month after the election results brought stability to the market.
Data from Rightmove shows a surge in house prices coming to the market for Greater London rising 2.1% or £12,320 during the month as confidence returns after the general election.
The rising asking prices in the capital means first time buyers and home movers must find a larger deposit or higher loan to value to purchase a property with outer London the cheapest averaging £508,052.
Over the year house prices in Greater London are higher by 3.1% averaging £612,465, outer with the biggest rise for inner London up 4.6% with average prices of £756,662.
Increase number of sales agreed
After many years of declining demand due to uncertainty about the UK leaving the EU demand is up from home movers with a 19% rise in the number of sales agreed.
This table from Rightmove shows the average asking house prices and annual change for London boroughs to January 2020.
| Borough | House prices | Annual change |
|---|---|---|
| Hounslow | £531,759 | 4.0% |
| Tower Hamlets | £598,751 | 3.8% |
| Barnet | £622,784 | 2.9% |
| Islington | £754,755 | 2.7% |
| Sutton | £460,274 | 2.3% |
| Newham | £414,064 | 1.3% |
| Southwark | £632,388 | 1.2% |
| Waltham Forest | £480,643 | 1.2% |
| Barking & Dagenham | £312,010 | 0.7% |
| Harlow | £548,571 | 0.6% |
Hounslow has the strongest annual growth rate of 4.0% or £20,452 with property values at £531,759 followed by Tower Hamlets up 3.8% or £21,919 with average values now of £598,751.
Homeowners in London have benefitted from the strong market and the equity release mortgage buyer can access wealth to give a child or grandchild the deposit to buy their first home.
Even remortgage buyers can benefit from these stronger values by releasing capital which they can use to improve their home such as adding an extension, bathroom or new kitchen.
Miles Shipside, Rightmove director said, we have been seeing signs of recovery in the London market since the middle of last year with many buyers and sellers feeling that the election result gives a window of stability.
Countrywide boost to price of property
Across the country property asking prices are higher by 2.3% which is the largest monthly rise recorded for January and 1.3 million buyer enquiries up 15% on this time last year.
The average asking price for properties nationally is £306,810 rising 2.7% for the year with the top of the ladder homes rising most at 3.9% annually with an average price of £538,221.
High demand from first time buyers to get on the property ladder has resulted in a lack of new homes and rising prices up 1.6% for the month and £193,103 average asking price.
One advantage for buy-to-let landlords with existing properties is the rise in asking prices increases equity which they can benefit from if they sell in the future.
There is still a shortage of suitable properties available on the market which is driving prices higher and the number of sales agreed are up by 7.4% although this is still limited by mortgage affordability.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or a buy-to-let investor.
Learn more by using the equity release mortgage calculator, mortgage cost calculators, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to maintain your lifestyle or even buy a more expensive home.
