The latest report from the Halifax shows the Greenwich as the top house price performer rising 24.6% this year.

Based on the Halifax report the London Borough of Greenwich has seen house prices rise by 24.6% in one year compared to the average for the UK of an 8.5% rise in 2014.

This compares to average prices for London increasing by only 13% over the year. The rise benefits homeowners but makes it harder for first time buyers to buy their first home and home movers rise up the property ladder.

Buy-to-let investors with a mortgage from a lender would also have affordability criteria to meet. As rental income must be 125% a ‘stressed ‘mortgage interest rate, usually from 5% to 6%, buy-to-let landlords may need to increase the amount of their deposit.

London the majority of top ten

Nine Greater London boroughs are amongst the top ten biggest increases in average house prices with Greenwich first and Ealing in West London second with 24.5% increase.

The Halifax report shows Crawley in Sussex with 22.4% higher prices during 2014 as the only non-London area and the top ten is as follows:

Area	Value	Change
Greenwich	£328,044	24.6%
Ealing	£455,543	24.5%
Crawley	£267,925	22.4%
Tower hamlets	£424,163	22.0%
Kingston Upon Thames	£460,853	21.4%
Sutton	£326,565	20.7%
Waltham Forest	£331,080	20.4%
Brent	£443,902	20.1%
Southwark	£450,277	19.8%
Hackney	£467,945	19.6%

Average house prices in Greenwich increased by £64,861 from £263,183 to end the year at £328,044 whereas the national average increased by £16,341 ending on £209,428.

One advantage of the rapidly rising house prices in Greenwich is remortgage buyers can now release capital for home improvements such as an extension, kitchen or bathroom.

Other areas that gain are Tower Hamlets with 22.0% rise, Kingston Upon Thames with 21.4% increase and Sutton in South London up by 20.7%.

The rise in house prices in London boroughs allows the older equity release buyer to access money in their property with a lifetime mortgage to consolidate debt or for home improvements.

Some house prices are lower

Outside of London and the south the biggest increase is Sheffield with an average rise of 13.7%. This South Yorkshire city has benefited from a significant rise in employment over the last five years which may have helped increase demand for houses.

Many areas in the north experienced a fall in house prices. Average house prices for Bury in Lancashire decreased by 4.8%, Keighley in West Yorkshire lower by 4.4%, Helens down by 2.6% and Preston lower by 2.0%.

The Nationwide also reported a year on year rise in house prices of 7.2%, slightly lower than the Halifax, with average house prices at £188,559. Their data shows prices in London are up 17.8% on the year to an average price of £406,730.

The Land Registry shows the average prices for a UK property in England and Wales was £176,581.

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 mortgage calculator, property value tracker chart and mortgage cost calculator. Start with a free mortgage quote or call us and we can take your details.

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