London house prices:
The boroughs rising and falling
Largest annual increases are in Croydon, while Westminster suffers ‘thumping’ drop
Despite fears that coronavirus would negatively impact the UK housing market, recently published figures indicate “all-time” high prices and a fast-moving market.
Data published by Rightmove shows that annual house prices are up 1.4% in Greater London, despite a reported exodus from the capital at the start of 2021.
The average property price in the capital has reached £635,306, with boroughs in the east, southeast and south of the city seeing the sharpest increases. London’s data appears to reflect a national trend for space over centrality; two and three-bedroom semi-detached houses are proving in particular demand across the UK.
And property is selling fast too, with 64 days now the average period to secure a buyer in the capital. Following the stamp duty holiday announcement in July 2020, the rate of sales was even faster at an average of just 48 days compared to highs of 87 and 88 days in April and May of that year.
“The stars have aligned for this spring price surge,” said Rightmove’s director of property data Tim Bannister, “with buyers’ new space requirements being part of the constellation alongside cheap mortgages, stamp duty holiday extensions in England and Wales, government support for 95% mortgages and a shortage of suitable property to buy.”
Property prices in Croydon are up 6.6% to an average £436,485. The boroughs of Barking and Dagenham, and Bexley have also seen a sharp increase of 6.1% to £456,796 and £477,277 respectively.
Westminster saw what The Sunday Times describes as a “thumping” fall of 13.2% over the 12-month period, with the average property price at £1,295,706 – the cost of “John Lewis nightmare” renovations not included. Camden and Tower Hamlets saw the next most significant decreases, with drops of 6.3% and 5.2%.
Despite an average price decline of 4.7%, Kensington and Chelsea remains the most expensive borough with a property likely to set buyers back an average of £1,525,989. In comparison, properties in London’s cheapest borough, Enfield, will cost buyers an average of £332,781, just above the national average of £327,797.
