London Property Jumps £28k In A Month
Whilst homeowners have been leaving the capital in search of larger properties post-pandemic, the housing market in London has seen a ‘revival’, with house prices increasing substantially, according to the latest figures.
The UK House Price Index has revealed that the average property price increased by 10.6 per cent in the year to August 2021, up from 8.5 per cent in July, and the average price of a home in London has skyrocketed by 5.6 per cent in the month, adding £28,000 to the average house price, bringing it to a record £525,893.
With the pandemic causing many people to work from home, many Londoners have sought to escape the capital for more space and access to outdoor spaces. However, this also caused the property market to decline, with current rent rates at their lowest since 2016.
The latest figures, however, suggest the London property market could be experiencing a bit of a revival.
Property experts have suggested that the revival could be due to several factors, such as the lifting of restrictions that have brought foreign investors back to the city.
Lawrence Bowles, the senior research analyst at Savills, said: “Although London had the lowest percentage of growth [of the UK regions], 7.5 per cent, values there rose more in pound terms than any other region: £36,469.”
He added that it is also the region where property values rose fastest relative to people’s incomes and that an analysis by the estate agent of house prices to salaries matched those by ASHE (Annual Survey of Hours and Earnings) in 2020, with London values increasing by 95 per cent of median full-time earnings.
The analysis showed that while regions such as the North East and North West, property values grew faster in terms of percentage, they rose by 63 and 72 per cent, respectively, of annual full-time earnings.
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