Slowing or growing? What are the latest London house price trends?
The capital’s property market is a law unto itself. That’s why the trajectory of housing prices in London is often hard to predict. As the busy spring sales period hits its stride, we explore the latest home buying trends to find out how they could affect house prices.
Homeowners who sold London properties are returning
During the pandemic average house prices in London fell, as homeowners moved away from the capital in search of more space. Now, those Londoners are returning. Late last year Rightmove reported a 9 per cent increase in enquiries for London properties, with the capital holding its position as the UK’s most popular search location.
It’s not just pandemic returners who are keeping property prices buoyant. Homeowners who stayed put during the bidding frenzy of recent years are finally emerging to plan their next move. They have added to a cohort of buyers, including first-time buyers and overseas investors, who are now keen to move in a market which is more open to reasonable negotiation.
How have prices changed over the past year?
Rightmove reports that sold house prices in Westminster were two per cent down over the previous twelve months. However, properties in the London Bridge area have remained steady over the past year.
In Kennington, we have seen a downward shift of 5 per cent since spring 2022, while Clapham saw a 5 per cent increase in the last year. The average property in Clapham now costs £850,429: 6 per cent up on the 2020 peak of £801,040.
Will rising interest rates affect asking prices?
Inflation remains in double-digit figures and is currently proving less easy to tame than many economists had hoped. Higher mortgages and the rising cost of living have already had an effect on current prices. According to Rightmove, average asking prices in the capital dipped by 0.1 per cent in February.
Should I buy or sell this spring?
If you are thinking of selling a property now, you can benefit from the value built up over the pandemic and post-pandemic periods: particularly if you are downsizing or moving to a more accessibly-priced area. As prices soften, you may be able to negotiate a more advantageous deal on your next property.
Buyers will welcome the trend towards lower prices, but we are unlikely to see a really significant drop in value in more sought-after districts. Despite challenging economic headwinds, the prime London market has proved remarkably resilient in recent years. That’s because buyers in PCL areas are less likely to be dependent on mortgages. Overseas investors – who made up 57 per cent of the property investors in the capital last year - also appreciate the additional value to be gained from a weaker pound.
A fast-moving marketplace
London’s property market is constantly evolving. As a leading independent estate agent, we’re here to guide you through this fast-moving environment with expert advice and exceptional personal attention. Why not give our friendly sales team a call?
