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London properties earn £2,100 a month

paulajohn
Written By:
paulajohn
Posted:
Updated:
16/04/2013

Homeowners in the capital are watching their properties increase by an average

Property owners in London are enjoying a housing market rally, and the larger the home the more equity it is gaining.

According to property website Home.co.uk, prices in the capital have soared by 7.3% in the last year – 2.5 times the national average.

The boom has been fuelled by huge rises in the amounts paid for properties in Prime Central London. However, according to Home.co.uk’s calculations, even when you strip out all properties worth over £1m, the remainder have seen their value increase strongly, with the average London property at £373,000 gaining £2,100 a month.

Little wonder that no-one is in a rush to sell – new property listings on the London housing market have fallen by 19% in the past 12 months.

The picture does vary area by area, however. According to Home.co.uk, taking an average two-bed flat, the top five performing areas over the last year were: Bloomsbury, Shoreditch, Bethnal Green, Chelsea and Elephant and Castle. Meanwhile Edgware, Harlesden and Willesden have all seen falls in average house prices.

Doug Shephard, director at Home.co.uk commented:

“Such rises in property values reflect the insatiable demand for property in the capital and with supply so limited prices look set to soar even higher this year.

“Supply is likely to remain low as London homeowners hang onto their highly appreciating property assets. Of course the reality is that such equity gains can only be realised if the owner actual sells their property and either downsizes or moves to a far more affordable region.

“Given the relative cost of moving up the ladder, in many cases, buying another property in the capital is likely to neutralise these gains.”

London prices are currently 4% higher than their previous property boom peak set in April 2008 and rising.


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