The average asking price in London is now £366,302, the first time prices have broken through the £360,000 barrier and a new record. In the London market as a whole, average asking prices continued to increase by a further 1.8% from last month; an increase of £6,313, Rightmove's latest research reveals. This brings the annual rate of increase to 21.8%, the equivalent of £65,583. Only 38% of properties in Greater London are now below the middle £250K stamp duty threshold. This means that many first time buyers will be faced with paying 3% tax on their purchase, stretching their resources to the limit. It is now common for them to borrow up to five times their salary to get onto the property ladder, as well as having to be increasingly resourceful to raise a deposit. Only 2% of properties coming to the market in London are now priced below the initial £125,000 threshold, where a 1% tax is levied.
"Wealthy city financiers, foreign buyers and big income earners are driving the demand in London and with quality stock at an all time low, there is an exacerbated effect on prices." says Miles Shipside, Rightmove Commercial Director.
