Member Article

House prices rise again as interest in prime London properties remains resilient

Interest in sub £1m homes in London’s most exclusive central postcodes has remained resilient in the face of Brexit as house prices continue to rise.

According to property firm LCP’s monthly market update, recent figures released by the Land Registry and Office of National Statistics (ONS) show that the average price of a Greater London home in May stood at £472,163, a 1.5% increase on the previous month and a 13.6% increase year-on-year.

The figures also show that prices in wider England and Wales have begun to close on the eye-watering averages now the norm in London, with average houses in the capital now only twice as pricey as elsewhere in the country.

Stimulus schemes such as the reduction in Stamp Duty and the Help to Buy are both being credited with driving up the average price of a home outside of London, which as of May stood at £221,832.

Of course these figures were compiled prior to June’s EU referendum, and LCP’s Chief Executive, Naomi Heaton, cautioned that the figures ‘do not factor in any change in sentiment since Brexit’ and that a weakening economy and more stringent mortgage criteria may hamper growth in the coming months.

However, Naomi did add that interest in London’s prime central properties remained robust post-Brexit, with enquiries increasing five-fold in comparison to the run-up to the referendum and asking prices increasing by 11% since the start of the year.

She added: “On the other hand, we predict the rest of the year will continue to demonstrate positive uplifts for the PCL property market, under £1m, underpinned by the weak pound and continuing low interest rates.

“Since last month’s announcement, LCP has received 5 times more enquiries to subscribe to its Central London residential fund on a pro-rata basis than in the 2 months preceding the vote. Vendors are also hiking up their prices.

“In January, one bedroom flats which were being marketed at an average of £675,000, are now being marketed at £750,000, an 11% increase. In contrast, the high value end of the market is still suffering from the impact of heavy tax increases and political uncertainty.”