The average London house price is now over £250,000 following consecutive price increases over eight months, according to data released by Haart estate agents.
It says the average price of a property in London increased by 1% in May to £250,137, up from £247,730 in April and that house prices have increased by 10% since this time last year from £226.144.
There have been marked variations in property prices across the different areas of the capital, with the North East and the East seeing the greatest increases in value at 4.5% and 2.1% respectively.
Both areas have benefited from regeneration and improvement driven by the 2012 Olympics as well as record high salaries in the City. The West and the South West still have the highest average prices of £280,380 and £273,362, although they have seen the lowest percentage increases in May.
But while demand for London properties has been high throughout May increasingly high prices have caused potential buyers to remain price sensitive.
Despite average prices exceeding £250,000, the level of first time buyers remains at 27% of the market share according to Haart. It claims first time buyers remain confident that the housing market is healthy, and with interest rates remaining relatively low they are still able to afford repayments on their mortgages, despite the rising prices.
Paul Smith, chief executive at haart estate agents, says: “The market has been very buoyant this first half of the year, as buyers are continuing to return to the market. Average house prices as a result are inching their way up and have now exceeded the £250,000 mark. Buyers are remaining price sensitive, however, and the overpriced properties are not shifting. We are expecting the World Cup to impact on activity levels over the next few months, and there will certainly be a bounce in the market after the competition. Now is a great time to enter the market and snap up a deal, ensuring you are a step ahead of the post tournament rush.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
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