London Property Prices Increases By 3.2% From January 2022
Property buyers in London might be surprised to hear that house prices in the capital are still rising, despite being the highest in the UK, increasing by 3.2 per cent over the last year.
According to the latest House Price Index from Land Registry, the average value of a home in London reached £533,986 in January 2023.
In fact, homes in the capital have increased by more than £22,000 since last January, despite the economic crisis and soaring mortgage rates.
Even so, values had fallen by one per cent the preceding month, with average houses in the capital being £10,000 cheaper in December 2022 at £543,009.
Director of Halifax Mortgages Kim Kinnaird said prices are stabilising thanks to “recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market”.
London’s annual growth rate is still significantly lower than the national increase of 6.3 per cent, with this being as high as ten per cent in the north-east.
Its house prices are still substantially higher than the national average, which was £289,819 in January 2023. This is likely down to the soaring cost of renting, which has made buying more attractive, and the huge demand for properties in the capital, as it continues to be the business and cultural centre of the UK.
It remains to be seen whether the rest of the country will catch up with London’s property prices, but recent figures suggest values in the capital are not increasing as quickly as they used to. This will make it easier for homebuyers looking for properties for sale in Hackney.
