Buying a London home just became tougher as average asking prices in the capital jumped £10,000 in just one month.
According to Rightmove’s latest House Price Index, average asking prices have soared 2.6% (£10,000) to £630,050 in October.
The reason? A shortage of homes in the capital and fewer properties coming to market have pushed prices up.
Tower Hamlets and Newham saw the highest increase in average asking prices of 18% and 18.1% respectively.
Rightmove director Miles Shipside said: “With fewer properties coming to market, let alone the right ones at the right price, demand is still not being satisfied in many area.
“With local authorities, housing associations and developers no longer satisfying the country’s housing needs, those in particular looking to rent or buy smaller homes must hope for the cavalry to come to their rescue, in the form of government action or large-scale institutional investment.
“Initiatives such as continued relaxation of planning rules to boost building, 200,000 new affordable homes available to buy over the next five years, or American-style institutional investment in the rented sector will take time to come over the hill, as the sound of bugles is still in the distance.”