House prices: London property market ‘recovery’ pushes prices up by £ 28,000 in just one month
The latest UK house price index shows that the average house price rose 10.6% in the year through August 2021, up from 8.5% in July 2021. Although the British were leaving the capital in the midst of the pandemic, the market experienced a “revival” with a substantial increase in house prices.
Over the past year, many Londoners fled the city due to the pandemic forcing people to work from home.
It also led to a downturn in the real estate market, with rent rates at their lowest since 2016.
However, the latest UK house price index shows that the London property market may recover.
The average price of a house in London jumped 5.6% in the month, from £ 498,083 to a record £ 525,893, adding almost £ 28,000 to its value.
READ MORE: Ms Hinch fan shares cheap hack to remove mold from washing machine
“The first is a return to normality both in a social sense, but also with regard to our professional lives and the physical workplace.
“This has led to growing demand from domestic buyers, which has laid a solid foundation for future growth.
“The second is an influx of foreign buyers who have had no choice but to sit still during the pandemic due to widespread travel restrictions.
“Now that these are starting to increase, we see interest pouring in from overseas and this is driving the market forward at a high speed.
“The tapering end of the stamp duty holiday and a potential rise in interest rates is unlikely to deter this interest and we can expect the London market to continue to strengthen over the next few months regardless. of what might be happening elsewhere in the UK. “
Lawrence Bowles, senior research analyst at Savills, said: “Although London has the lowest percentage of growth [of the UK regions], 7.5 percent, values there rose more in terms of pounds than any other region: £ 36,469.
“It is also the region where values have increased the fastest relative to people’s incomes.
“Our analysis compares rising house prices to ASHE’s annual full-time incomes in 2020. London values rose 94% from median full-time incomes.
“In more affordable areas, such as the North East and North West, prices have increased faster in percentage terms, but have increased by 63% and 72% of full-time annual earnings, respectively. “
The largest annual increases were recorded at Tower Hamlets, Hammersmith & Fulham and Camden.
Lucy Pendleton of London Estate Agents James Pendleton said: “The capital has turned a corner and we expect the London market to now mount a load and make up for lost time which has seen the regions get all the fanfare over the years. Last 18 months. “
At country level, the strongest annual growth in house prices through August 2021 was recorded in Scotland, where house prices rose 16.9%.
Wales saw house prices rise 12.5% in the year through August 2021, while Northern Ireland saw house prices rise 9% in the year. during the year until the second quarter (April to June) 2021.