House prices in London have broken through the £600,000 barrier for the first time, new figures have revealed.
According to Your Move and Reed Rains, the average house price in the capital has more than doubled over the last seven years to £600,625. This is an 11% rise over the last year, more than any other region.
Last month also saw the fastest yearly house price growth across England and Wales since December 2014 – up 8.9% to £298,030.
There was a record high for house prices in nine of the 10 regions, with overall average home values now approaching £300,000.
Only the North East recorded an average price below its peak of £160,792, which was set in March 2008.
Eight London boroughs have seen their prices double since the financial crisis. The borough with the highest percentage change over the seven years is Waltham Forest, located to the North East of London, where prices have risen by 113%.
Richard Sexton, director of e.surv chartered surveyors, said: “This acceleration in home values comes when many had expected house prices to dip due to a natural decline in demand from buy-to-let and second home buyers. However, after an exceptional March, there is now a severe shortage of properties on the market, with fierce competition between buyers for each available property.
“Clearly, the government’s offensive against landlords has not eased the way for other buyers, as property prices continue to pick up pace – growing by nearly 50% over the past seven years, with prices rising from £204,875 in April 2009 up to £298,030. With the maximum value of the government’s flagship starter homes capped at £250,000, first-time buyers may soon see a lot less property for their money. George Osborne needs to increase incentives to sell and relax planning restrictions if he truly wants to fulfil the homeownership dreams of young people.
“These kinds of huge hikes in home values in London mean that Sadiq Khan will now face a serious challenge to deliver his promise of increased affordable housing in the city. Across London, it’s been the more affordable areas which have seen some of the steepest increases in house prices annually, as the capital’s residents seek out cheaper properties.”
