Supplied by the Land Registry
Musings of a London Property Buyers Agent
The monthly house price index, published by the Land Registry has shown that London house prices jumped 2% in June, with pricing in the rest of the country broadly stable.
Prices in Hackney increased by 2.7%, the highest increase, whilst those in Newham suffered most, posting a decrease of 2.7%. Prices in Westminster, home to Belgravia, Mayfair, Marylebone and parts of Notting Hill were flat, dropping .2% since May.
Prices in the Royal Borough of Kensington and Chelsea however followed the trend, increasing by 1.8% in a month.
To put these amounts into context, they are similar to the monthly increases we saw in 2007, although almost every borough posted house price increases then. These new statistics mean that London prices are now down by just less than 15% since their peak. Prices in the South East are now approximately 82.5% of those acheived at the top of the market.
There is no data on volumes of sales since the market turned in May, but we would expect an increase in activity from anecdotal evidence, hampered by a lack of stock on the market.
All in all this survey doesn’t provide much of a surprise but acknowledges what we have seen in the market and confirms the data provided by other house price indices. Regular readers will be aware that we rely mostly on the Land Registry data, as it is based on actual sold prices so takes account of gazundering/gazumping post offer and down-valuations imposed by surveyors, unlike indices produced by most other bodies.
First time buyers should not feel too disheartened as we suspect there will be a downturn at the end of this year but the considerable jump in values in London shows that there is considerable appetite for London property and with stock very limited, I suspect this London trend will continue, albeit with significantly lower incremental changes.
Prices across England and Wales as a whole are stable, with only a 0.1% increase in June. For more information please don’t hesitate to call us, the London Property Buyers Agents on 020 7923 7564.
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