x
By using this website, you agree to our use of cookies to enhance your experience.

TODAY'S OTHER NEWS

Property market surges as London hits double digits

New Land Registry figures showed house prices in England and Wales rising a healthy 5.6% in the year to October, taking the average property value to £186,350.

London posted the largest annual price growth a 10.6 per cent and the average property price is now £503,431.

Monthly house prices across England and Wales rose 0.4% compared to September 2015. The North East experienced the greatest monthly growth with a movement of 1.9%.

The figures also showed a fall in property transactions, from a monthly average of 82,748 between May and August 2014, to just 77,046 in the same months this year.

The number of £1 million properties sold fell 13% to 1,280 in August, against 1,473 in August 2014.

Brokers fear the continuing surge in house prices will make it even harder for first-time buyers to get on the property ladder.

Brian Murphy, head of lending at the Mortgage Advice Bureau (MAB), said the rate of price growth isn’t likely to slow until housing supply is increased.

“First-time buyers in the capital currently face average prices of over half a million pounds and the London Help To Buy initiative will come as welcome news to all those struggling in this highly competitive market.

“Given that average house prices in London shot up by 10.6% in 12 months, the higher 40% equity loan is clearly needed.”

Adrian Gill, director of Reeds Rains and Your Move estate agents, said: “The London Help to Buy scheme sounds great on paper, but in reality the average price of a home in the capital is now above half a million and already rising in value much faster than elsewhere across the country."

Jeremy Leaf, former RICS chairman and north London estate agent, said the London property market marches on. “It was our busiest October in a long while, with the market showing no obvious signs of a slowdown.”

Leaf said the lack of supply is a huge issue and will continue to fuel house-price growth over coming months.

“Demand for home ownership is high but affordability continues to be a problem for many.

“While mortgage rates are cheap, meeting lenders’ tougher criteria can be an issue.”

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up