The average property in London has broken through the £600,000 mark, as house prices have almost doubled in the capital since 2009, according to data from LSL Property Services.
The firm, which owns Your Move and Reeds Rains estate agents, reports that house prices in England and Wales have risen by 8.9% since April last year, to reach an average of £298,030.
The figures, based on Land Registry data, show that property values have hit new peaks in nine out of ten regions. The North East is the only part of England where prices are lower than before the downturn of March 2009.
House Prices in London Almost Double to a Whopping £600,000
In London, prices have continued to surge, with the average property value increasing by 11% over the past year, to £600,625.
In eight London boroughs, average prices are double what they were during the credit crisis in 2009. The area with the greatest increase is Waltham Forest, where prices are up by a huge 113% over the last seven years. The average property in the area now costs £430,704.
The Director of Your Move and Reeds Rains, Adrian Gill, claims that some of the more affordable parts of the capital have experienced the steepest increases in prices, as residents search for cheaper homes.
“These kinds of huge hikes in home values in London mean that Sadiq Khan will now face a serious challenge to deliver his promise of increased affordable housing in the city,” says Gill.
The new Mayor of London has promised to deliver a series of measures that will aim to resolve the housing crisis.
The LSL report states that the average price of a home in England and Wales is edging closer to £300,000, after rising by 1% over the month and by 50% over the last seven years.
“This acceleration in home values comes when many had expected house prices to dip due to a natural decline in demand from buy-to-let and second homebuyers,” explains Gill. “However, after an exceptional March, there is a severe shortage of properties on the market, with fierce competition between buyers for each available property.”
LSL reports that there were 20,000 fewer sales in April, as demand fell in the weeks following the introduction of the 3% Stamp Duty surcharge on buy-to-let properties and second homes.
This is reflected in the latest report from the Royal Institution of Chartered Surveyors (RICS), which shows that demand has fallen for the first time in more than a year.
Figures from HM Revenue & Customs (HMRC) also reveal a large spike in home sales during March, as landlords rushed to purchase buy-to-let properties ahead of the higher tax rate.
The RICS believes that reduced demand from buy-to-let landlords appears to be the main cause of a decline in new buyer enquiries.