While there is a great deal of uncertainty surrounding the London property market right now, it might surprise some observers to note the average asking price for homes in the capital is on the up. There is a desire for larger homes, and of course, the stamp duty holiday is driving activity in the market.
At Residential London, we are pleased to say we work closely with buyers and vendors in the market. We know there is a considerable level of interest, and yes, many families are looking to move to the suburbs.
As it is likely remote working will remain commonplace, there will be greater flexibility for workers. This should affect buyer behaviour in and around the capital.
London property prices are rising
The average price of property in London stands at £633,000. This is a rise of 0.6% compared to last month, and it is an increase of 4.8% compared to August of 2019. There has also been a rise in the average cost of starter homes in London.
This average cost stands at £481,000; which is an increase of 1.2%.
There has been a sharper rise in property classed as “second-stepper” property. This is property that is recognised as a three to four-bedroom property, while excluding detached properties. The average price paid for this style of property is £706,000. This represents a rise of 4.2% in the year-on-year figures.
However, the most significant rise comes with “top of the ladder” properties. These are homes which have at least four bedrooms. With an average cost of £1,454,000; they will be beyond the reach of many families, but there is great demand for these homes. The year on year increase for these properties stands at 9.1%.
Across the country, the average price of property stands at £320,000. This is a 0.2% fall on the previous month figures, but is a 5% rise on the August 2020 figures. This represents the largest annual growth recorded by Rightmove in four years.
Buyers are looking for more space
Tim Bannister who is the director of property data at Rightmove, said most of the buying activity in the capital is taking place in the suburbs. Sales in Zone 1 of London has fallen 14% compared to the 2019 figures.
Tim said; “Needing more space has always been the most popular reason for moving house, but now there’s a new urgency for extra space to be able to work from home. At the start of the year a fourth bedroom was very much a luxury for buyers trading up, but it’s now emerging as a must-have for those who are able to take that step.”
Tim continued by saying; “We know that some people are now choosing to move out of London altogether, but these latest figures show that there’s still plenty of activity in the outer areas of the capital. The market remains challenging in Zone 1, as the benefit of living within walking distance of an office in the City has dropped down buyers’ wish lists for now.”
If you have any questions or queries about the housing market, it is best to call on experts for support. We are still available to help you, while following social distancing guidelines, so feel free to contact us if you need to. We can arrange a free valuation for you, and if is this of interest, please contact Residential London today.
We have a team of qualified professional property consultants specialising in real estate across the capital. We are active in Westminster, The City of London, Kensington & Chelsea, Hammersmith & Fulham, Wandsworth, Lambeth, Islington, Southwark, Tower Hamlets, Greenwich, Newham, Hackney and many more London locations.
You can call us on +44 (0)20 3733 3817 or email us on info@reslon.co.uk
