The average house price in London has surpassed £500,000 in more than half of the capital’s postcodes, according to data from estate agent Stirling Ackroyd.
The agency used its own data and figures from Land Registry for prices paid. It found that of 279 postcode areas in Greater London, 142 (51%) have an average property price of at least £500,000.
This is not good news for investors hoping to buy property quickly ahead of buy-to-let tax changes this year. Already, landlords are rushing to invest before being hit by the changes, notably the 3% Stamp Duty surcharge set for 1st April. Find out more here: https://landlordnews.co.uk/landlords-rushing-to-avoid-buy-to-let-tax-changes/
It also reduces the number of areas that are affordable for those using the new Help to Buy London scheme, which offers purchasers of new build properties an equity loan of 40% of the home’s value. The scheme can only be used on properties worth up to £600,000. Read more: https://landlordnews.co.uk/help-to-buy-london/
Outside of the capital, 99.4% of postcode areas in England and Wales have an average house price of less than £500,000.
Districts with half-million pound house prices now include SE15 in Peckham and E1 in the East End, which includes Shoreditch and Whitechapel. In these two postcodes, prices have hit £503,000 and £501,900 respectively.
Stirling Ackroyd says that numerous extortionate neighbourhoods have long skewed London’s average house prices, but they are now rising more broadly and becoming increasingly detached from the rest of the country.
The Managing Director of the agency, Andrew Bridges, comments: “London is increasingly another country. Within these borders, more and more territory is being claimed by home values only dreamed of by sellers in the past.
“Gone are the days of the traditional prejudices about certain postcodes. London is more diverse than ever, but the boundaries are shifting and blurring. Lawyers and bankers are just as likely to live in Hackney as they are to choose Fulham, while the offices of law firms and financial services start-ups are found as frequently in Shoreditch or the Southbank as they are in the City.”1
The study found that there are still areas within close proximity of central London where the average price is under £500,000. In SE16, which includes Bermondsey and Rotherhithe, the average home costs £474,600, despite being less than three miles from the geographic centre of London.
West London is still the most expensive place to buy property, with postcode areas starting with W – including Mayfair, Kensington and Marylebone – commanding an average price of £1.2m. Contrastingly, the average price in the E postcodes of east London is £434,000.
Recent figures from the Land Registry show that prices in every London borough have surpassed the £300,000 mark and are rising most rapidly in the least expensive areas. In Barking and Dagenham, and Hillingdon, for example, prices rose by more than 15% in 2015.
Homelessness charity Shelter has released data from its latest survey, which says that rising housing costs mean that parents living in London are worried about their children’s chances of affording a home in the capital in the future.
The majority, 86%, fear that their children will be priced out of London and forced to live elsewhere, breaking up families.
If you are looking for a property in the capital within your budget, use this useful map that shows you how much the average house costs near each of the London Underground stations: https://landlordnews.co.uk/the-average-house-price-at-each-london-underground-station/