Thursday, May 13News For London

London housing crisis takes average price to new record

London’s house prices saw the largest monthly growth in more than a year in December as prices rose by 2.1% on November.

 

Houses in Haringey, north London (picture courtesy of Nigel Mykura)
Houses in Haringey, north London (picture courtesy of Nigel Mykura)

It was the biggest monthly increase since August 2014, figures from the Land Registry show, and took the average price for a home in the capital to a new record level of £514,097.

The report shows that December prices were also up by more than 12% year-on-year, the fastest rate of growth since last February.

The increases were largely fuelled by growth in suburban areas, such as Hillingdon, Croydon and Bexley, as more and more Londoners are forced further out of town to find affordable housing.

London mayoral hopeful Sadiq Khan tweeted his reaction to the report.

By contrast, prices in more expensive, central boroughs, including Chelsea and Kensington, saw only modest increases.

The average age of a first time buyer is 31. But for the majority of people under that age who rent, the house price increases also have an effect, since it pushes up costs for landlords.

Indeed, a government report, also issued today, brought little comfort to London’s renters. It showed rents in the capital are going up by 3.9%, faster than anywhere else in the UK.

Edited by Max Burnell