London Property Prices Soar To New High
There is no better time to use a property finding service in London than when the market is hot and moves need to be made quickly to snap up good prospects – and that time is now.
Fanning the flames of this furnace is the ‘boomerang’ effect as the pandemic eases, with the return to the office and the opening up of the capital’s facilities drawing people back into the Metropolis.
This is in stark contrast to the last couple of years when many preferred the prospect of working from home somewhere in the countryside and London prices lagged behind the rest of Britain.
The result is that prices rose in all but one London borough in February, to an average asking price of £667,000, according to new data from Rightmove. The last year has seen London property prices rise by 7.3 per cent, the highest rate since before the Brexit vote in 2016.
Rightmove director of property data Tim Bannister noted that the return of office working is clearly encouraging to commuters to buy, commenting: “High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month.”
However, it may be worth noting where and how these price rises are manifesting. As the Evening Standard notes, it is not the ‘prime central London’ that is dominating the surge, but outlying boroughs on the periphery of the capital, with Bromley leading the way with an 11.5 per cent rise. Other strong performers include Barking & Dagenham, Havering and Merton.
Inner London boroughs saw a more mixed picture. Kensington and Chelsea had the third highest price growth at 10.6 per cent, but east London’s post-Olympics surge appears to have dissipated, with Hackney prices actually falling and both Haringey and Tower Hamlets barely rising.
Rightmove had already hailed its “fastest ever” start to a year in January, when Mr Bannister said demand was so high across the UK that buyers who were able to move fast would have a distinct advantage to those waiting for their own homes to sell first.