London asking house prices rise across all boroughs to hit new record high

·5 min read
The price of an average London home now stands at £677,110 according to the Rightmove House Price Index  (PA Archive)
The price of an average London home now stands at £677,110 according to the Rightmove House Price Index (PA Archive)

London house prices have risen across all boroughs this month to hit another record high, with the average asking price now standing at £677,110.

This is year-on-year rise of 6.6 per cent, according to Rightmove’s latest property market data, and an increase of 1.9 per cent from last month.

The long-awaited end of Covid-19 restrictions, with the subsequent reopening of offices and cultural attractions, has been tempting buyers back to the capital after two years of dampened interest.

Outer boroughs celebrate double-digital growth

Borough data shows that Kensington and Chelsea is enjoying the biggest annual hike, with property prices rising 13.8 per cent to £1.74 million, meaning it is still the most expensive place to live in London.

Demand for the royal borough’s multi-million-pound homes has been fuelled by the return of wealthy international buyers to the prime London property market in recent months.

The most affordable of the city’s boroughs is Barking and Dagenham in the east, with its average asking price up by 10 per cent to £365,907.

Five other boroughs have also experienced double-figure house price growth: central Westminster, and the four outer London hotpots of Havering, Sutton, Merton and Bromley.

Of these, Havering in the east will be the most enticing to first-time buyers; property prices here have risen by 11.3 per cent but still stand at a comparatively affordable £475,150. Sutton in the south is a close second, with prices up 11.2 per cent to £540,305.

While prices have not fallen year-on-year in any London borough, Ealing in the west experienced a slight drop of 0.9 per cent since last month. However, prices are up 4.1 per cent annually.

Lambeth in the south has seen the most sluggish annual growth of just 0.7 per cent, with the average home currently costing £661,069. Growth has also been slower in Brent (2.8 per cent), Hammersmith and Fulham (3 per cent) and Camden (3.3 per cent).

Going, going, gone

Rising demand as more people return to city life, coupled with limited stock, means properties in the capital are selling the fastest they have in 12 months.

This time last year, it took an average of 64 days to secure a buyer, but securing that coveted SSTC (sold subject to contract) stamp now takes 51 – that’s less than two months, if you’re lucky.

Tim Bannister, Rightmove’s Director of Property Data, said: “The economic headwinds of strongly rising inflation and modestly rising interest rates are being kept at bay by the even stronger tailwind of property market momentum that has carried over from last year.

“While there is growing economic uncertainty, our current market statistics show there is greater certainty that your property will sell more quickly than ever before, and likely at a record price.

“It can’t and won’t continue like this, but with the demand and supply imbalance being so out of kilter, it looks like any substantial slowdown will be gradual in coming and be a soft rather than a hard landing.”

Hat-trick for UK house prices

Nationally, house prices have hit a new record high for the third consecutive month, with asking prices up 9.9 per cent from a year ago to £360,101.

The £19,082 price jump of the last three months is the largest three-month price increase that Rightmove has ever recorded.

The fast speed of sale across the UK – 33 days on average, compared to 67 in the more normal pre-pandemic market of 2019 – means that properties are achieving 98.9 per cent of their asking price, with 53 per cent of those that sell doing so at or over their final advertised cost – two further Rightmove records.

Time to take advantage of sellers’ market

The pace of UK house price rises is slowing slightly, as expected, due to economic headwinds like the inflated cost of living and increasing interest rates, with this month’s 1.6 per cent increase lower than that of the previous two.

Some month-on-month price falls over the summer are also predicted, as usual, but these are unlikely to be significant due to the continuing supply and demand imbalance.

“The high speed of the market and competition among buyers when making an onward move will be deterring some owners from putting their homes up for sale,” said Mr Bannister.

“However, if you can secure both a quick sale and a quick purchase then it’s a lot less stressful than the uncertainties of a slower market, when finding a buyer for your own home can drag on for months or not happen at all.

“Over 125,000 new sellers have taken advantage of the great sellers’ market this month, but more are needed in all areas and in all property sectors to meet high buyer demand.”

Average house price in every London borough

Borough

Avg. price Apr 2022

Monthly change (%)

Annual change (%)

Kensington and Chelsea

£1,736,077

2

13.8

Havering

£475,150

1.9

11.3

Westminster

£1,441,340

2.4

11.2

Sutton

£540,305

2.9

11.2

Merton

£716,574

3

10.3

Bromley

£615,304

0.7

10.2

Barking and Dagenham

£365,907

0.6

10

Hillingdon

£550,386

1.3

8

Harrow

£621,808

2.7

7.7

Kingston

£692,018

1.3

7.7

Waltham Forest

£548,390

1.7

7.2

Redbridge

£510,191

1.5

6.8

Bexley

£466,015

0.6

6.8

Croydon

£488,310

1.5

6.7

Haringey

£663,498

1.2

6.4

Barnet

£700,085

5

6.2

Wandsworth

£830,747

1

6

Richmond

£922,614

1.9

5.5

Enfield

£503,096

2.8

5.4

Islington

£771,669

1.3

5.1

Greenwich

£484,228

1.1

4.7

Newham

£455,380

1.7

4.4

Southwark

£652,140

0.2

4.3

Ealing

£593,052

-0.9

4.1

Hackney

£680,016

2.1

4.1

Lewisham

£509,431

0.8

3.9

Tower Hamlets

£580,978

1.3

3.9

Hounslow

£583,290

2.4

3.5

Camden

£1,000,952

1.2

3.3

Hammersmith and Fulham

£964,916

1.4

3

Brent

£614,062

1.4

2.8

Lambeth

£661,069

1.8

0.7

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting