London house prices up 22%

The average property price in London has soared by 22% this year.

According to the London Property Index compiled by estate agency haart, the average selling price of a home in the capital rocketed from £152,207 in January to £194,052 in October.

haart, which makes up part of the UK’s largest independent estate agency group, compiled the survey using statistics from 55 branches across London.

Russell Jervis, Managing Director of haart, said:

“The number of properties being sold remaining steady over the last few months but the prices we are selling them for has grown considerably. Sellers are starting to get a decent return on investment as property prices begin to rise.

“With a number of new products being launched by lenders over the last couple of weeks to help first-time buyers get on the first rung of the ladder, and with the Stamp Duty still low until 2010, now is a great time to buy and sell.”

The London Property Index also revealed a number of hotspots including Blackheath Village, which sold 60% more properties in October compared with September; Southgate with a 25% increase in property sales and Willesden Green up 27% over the last two months.

Meanwhile, Email4property.co.uk, the UK’s biggest online network of estate agents, has seen a 20% rise in people using its ‘Premier Property’ search option since August this year.

Steven Lees, Head of Marketing for email4property.co.uk, said:

“Those lucky enough to have had sufficient capital to secure a mortgage over the past two years have been in a strong position to capitalise on the low prices available across the market, and many have been able to secure homes that would previously been out of their reach.

“With strong signs of firming house prices and rents starting to improve across the sector, people are now realising that the prime market may not remain open to them for much longer. However, there are still options available and plenty of specialist agents across the country who are well-equipped to advise buyers/renters on their options and help them source the best properties available.”