London house prices race ahead - Mortgages - News - Moneyfacts


London house prices race ahead

London house prices race ahead

Category: Mortgages

Updated: 31/05/2011
First Published: 31/05/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

London is bucking the wider trend of stagnating house prices in the UK, with prices up by 5% over the last 12 months in the capital.

Data from the Land Registry has shown that while house prices in the rest of England and Wales struggled in the 12 months to April, values in the capital grew strongly by comparison.

A strong 3% rise in house prices in London during April took annual price inflation to 5% for the year.

In the UK and Wales, there was an average fall of 1.3% in the amount people paid for a home over the last year, taking the national house price average to £163,083.

In fact, apart from London, just one other region recorded an annual rise in prices, although the 0.5% increase in the South East was markedly smaller than in the capital.

At the end of April, somebody buying a home in a London postcode could have expected to fork out an average of just over £352,000.

The region that has suffered the largest scale annual fall is the North East, where homeowners have seen an average of 8.1% shaved off the value of their properties.

It was the place where prices fell the most in April; prices dropped by 1.7% in the month, taking the average value of a home to just shy of £103,000 – by far the lowest of all regions in England and Wales.

There were also monthly falls in prices in the East and the North West in the month.

The East Midlands, Wales and West Midlands all enjoyed strong monthly rises, with increases of 1.7%, 1.2% and 1.1% respectively.

Figures also showed that transaction volumes have remained relatively consistent over the last six months, at around the 47,000 per month mark.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.