Written on 1 February 2016 by Alistair Boscawen in Property News
Property values in the outer fringes of London are rising significantly faster than central areas such as Kensington and Chelsea, Westminster.
The latest Land Registry data shows the average price of a home in London jumped £10,683 between November and December to a fresh peak of £514,097.
And the average price of a home in every London borough now exceeds £300,000.
The 2.1% monthly increase in values was the biggest rise seen since August 2014, while the 12.4% annual rate is the fastest since last February.
The biggest year-on-year increase was in Barking and Dagenham, where the average price of a home rose 15.3% to £309,760.
Other big annual rises were recorded in outer London boroughs such as Hillingdon (15.2%), Havering (12.4%), Bexley (12.3%) and Croydon (12.2%).
There is concern that as buyers look for more affordable properties away from central areas of London, the number of homes being built is falling short of demand in 27 out of the 32 boroughs.
If building continues at the current rate, London will be 350,000 homes short of its needs in 10 years’ time and almost 587,000 short by 2036.
“The gulf between supply and demand is continuing to drive up competition, pushing up prices,” says Stephen Smith, director of Legal & General’s mortgage arm Housing Partnerships.
“Many first-time-buyers are being pushed out of the market. This lack of housing supply must be addressed before things deteriorate further.”
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