Home Property London’s average house prices beat record £400k mark

London’s average house prices beat record £400k mark

by LLP Editor
13th Jul 12 2:15 pm

Average house prices in London have smashed through the £400,000 mark in the last year with some boroughs recording their highest ever values, a report has shown.

The average residential property in the capital sold for £409,447 in May this year, 8% higher than the average price of £379,178 at the same point in 2011, according to LSL Property Services/Acadametrics’ House Price Index.

House prices in London have been driven by strong demand from overseas investors, according to Acadametrics chairman and housing market specialist Dr Peter Williams.

One London estate agency claimed overseas buyers currently account for 20% of all purchases in London and 35% to 40% of properties bought for more than £5m.

MyLondonHome.com director Andrew Griffith said: “London is a relative safehaven in comparison to some other European countries and I see a lot of investment from Italians, Spaniards and Greeks.

“In years gone by we had a strong position and used to see investment from Singaporeans, Malaysians and the Far East, but within the last six to nine months we are getting investment from Europeans and I wouldn’t have said that a year ago.”

House prices in 10 of the 33 London Boroughs are now at record highs, with the average property in Kensington and Chelsea valued at £1,439,897 in May, a rise of 30.2% on the £1,105,673 recorded last year.

Properties The City of Westminster, Richmond Upon Thames, Islington, Wandsworth, Barnet, Haringey, Lambeth, Hillingdon and Lewisham have also hit record prices.

The most expensive boroughs in London tend to have led the price rises. The top 10 Boroughs ranked by price include six of the areas to experience the biggest increases over the last 12 months, while five of the 10 lowest priced boroughs have seen the least price growth.

Dr Williams believes the Olympics will have a negative impact on housing transactions in the capital. Road and other travel restrictions will make it tougher for buyers to look around, while the Games themselves will eat up leisure time which could otherwise be spent visiting properties.

Griffith said: “I think it is a possibility that it will be harder for people to get around London during the Olympics and I do have concerns over that because if people are not viewing then we are not going to agree lets and sales.

“But those who are out are likely to be serious buyers. Someone who normally looks at 15 or 20 flats, if it is harder to get around London, may only look at 10 and these people looking are going to be much more serious about finding somewhere.

“It is only for three weeks at the end of the day, it may have a small effect but nothing I am overly concerned about.”

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