The gap between London property prices and the rest of the UK grew to its broadest ever, with investment in prime London pushing the average house price in the capital up to £500,000.
Property never seemed to be out of the headlines last year, with London particularly booming as the gulf between prices in the capital and the rest of the country continued to increase.
Annual growth for the 12 months to May peaked at about 20.1%, as home owners cashed in on their properties and moved to the south east. As well as this, there was an enormous demand for new homes as the government’s Help to Buy scheme kicked into gear and credit became increasingly available.
International and domestic cash buyers helped to push up prices in prime London areas such as Kensington, Chelsea, Belgravia, Mayfair and Knightsbridge. The knock-on effect meant that the average house price in the capital increased to £500,000. Towards the end of the year, prices started to cool off a little, but a lack of supply means momentum is still strong.
We’ll have to wait and see what 2015 has in store for the property market – it’s election year so it will be very interesting as to how things unfold. We’ll be giving our opinion on how the market will fare later this month.
For more information click on the link below: