London's property market remains buoyant, resulting in prices reaching new record levels. The average asking price in Greater London is now at £344,949, a 2.8% monthly rise and an 18.2% annual increase, Rightmove's latest research reveals.
Demand is still outstripping supply with top end addresses continuing to see a mini-boom and break new landmarks. Average property prices in Kensington & Chelsea have now surpassed the one million pound threshold. Hammersmith & Fulham, Kingston-upon-Thames and Wandsworth, which have all seen substantial annual price increases, have also risen in value since last month.
Miles Shipside, Rightmove's Commercial Director, comments: "The divide between London and the rest of the country is still growing. The capital is leading the way, with prices 50% higher than the national average. This head of steam could mean that the hike in interest rates to 5% will not affect the majority of the London property market. However, many first time buyers can almost forget about owning a property in London. Average house prices are now 4.4 times income, compared with 2.6 times in 1970, making it the least affordable city in the UK. (Data from the Office of National statistics). Rising prices also mean only 2% of the capital's properties are below the stamp duty threshold of £125,000, so nearly all first time buyers have to find at least another 1% to fund their first home. The extraordinary amount of money around in London at the moment isn't helping the market to stabilise. It is a tough time for first time buyers who have to rent for a longer period of time than ever before, leading to a more and more buoyant buy-to-let market which in turn causes prices to rise even higher."
