Average London price hits over half a million

According to a survey from haart, the average London property price has reached £501,056 - up 26.1% annually and 4.3% on month. This means an annual growth of £103,761.

Related topics:  Finance News
Amy Loddington
21st May 2014
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UK new buyer registrations increased 10.8% annually -  however, supply of property dropped 1.7%. Registrations from first time buyers continue to climb, up 22.4% on last year.


Paul Smith, CEO of haart estate agent, comments:

“London homeowners will be forgiven for being astonished that they have ‘earned’ an average £100,000 in equity over the last 12 months. In spite of London property prices breaking new records of over £500,000, up 9.4% annually, buyers are still coming to the market in numbers greater than last year. London new buyer registrations are up 11.7% annually with first-time buyer registrations up 16.7% on last year. However with more properties being pushed into the £500,000 price range more buyers will be bumped up into the 3% stamp duty tax band – the unfairness of this disproportionately South East focused tax must be addressed before the next election.
 
“The way to put the brakes on price growth is to increase supply, but in London we have only seen new property instructions rise 0.2% annually and new properties for sale across the UK as a whole are down 1.7%. Homeowners can help break this cycle by putting their property for sale before finding somewhere themselves thus freeing up supply.
 
“Bubble talk needs to be burst – while UK house prices are rising they have not recovered to their 2007 levels. The UK market remains strong, with an average property price increase of 9.4% on April last year, up 2.1% on the month, just shy of £200,000. Although we are only a few weeks into MMR, growth in prices and interest in buying property have not been dampened. After all, stress tests are no bad thing and reassure both the lender and the buyer that the buyer’s income flow can support current and crucially future mortgage payments.”

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