London house price increase nets homeowners £51,000 in a year
06-09-2016
Halifax published its quarterly House Price Index today, and values are up a staggering 9.2 per cent in 12 months
London house price increases are once again front and centre as The Royal Bank of Scotland’s subsidy, Halifax, published its quarterly House Price Index today, and the results confirm that house prices are on the rise in London again, leaving those outside the bubble lagging behind.
The report reiterates that property prices per square metre have risen by 432 per cent in Greater London, compared with a national average increase of only 251 per cent over the last 20 years. These statistics are staggering, but what this means today is without lifting a finger, London homeowners have come away on average £51,000 better off since last year. The average price of £556,350 for London property in May of this year, up 9.2 per cent from the year before, puts even greater emphasis on how far ahead London is than the rest of the UK.
The commuter belt has its attractions. Proximate enough for work, but removed enough to enjoy greater space and fresher air. But the reasons for the vast uplift in price is exemplified in the boroughs of Royston, where a property now costs on average £357,049 and Newham, where a property costs £319,522. A 22 per cent increase on 2014’s numbers, that’s £58,000 on average.
The lack of available and affordable property in central London has undeniably spurred the movement to inhabit these areas and turn them into acceptably quaint former cultural microcosms for the rising intelligentsia and aspiring class. While Kensington and Chelsea, home of our reality friends, maintains its mantle as the most expensive area on average (ONS), a property there will set you back a cool £807,407. It’s a safe investment area, prices do not fluctuate on the same scale as reported in Newham – last year the value rose by only 1 per cent.
Those left behind, Durham, Birmingham and Accrington for example have seen prices fall dramatically - in the case of Durham, by 2.1 per cent. London does more than just edge these other towns and cities, it trumps them.
With this in mind, it’s no surprise that the allure of London has never been stronger – it’s a stretch to get on the ladder – but once you’re up it, the fruits are worthwhile, £51,000 worthwhile.