Flat prices to hit new high
Latest residential research by JLL reveals that at the end of 2016, only 12 per cent of London postcodes had an average of less than £200,000 for a one bed flat.
But if current price growth trends continue, within three years there will be no postcodes left in the Capital with typical first time buyer properties averaging below £200,000.
Price growth for one bed flats in 2016 was notably higher in outer London compared with Inner London, JLL’s research shows.
JLL residential research associate director Nick Whitten says: “A critical supply-demand imbalance has compounded the affordability issues facing many aspiring homeowners in London.
“More and more first time buyers are turning to the outer boroughs in search of better value housing. However, this new wave of demand is creating significant price growth in outer areas, well in excess of wage growth.
“If this trend continues there will be no London postcodes left where a one bed flat averages below £200,000.
“A significant increase in housing delivery of all tenures is needed to address this issue and ensure London can continue to thrive as a global capital.”