Rises in house prices in London look to be slowing down, but the average cost of a home in the capital is still more than twice that of the UK as a whole, according to figures from a price monitoring company.
UK-wide property prices rose 10% annually up to September 2015 to £221,797, while London property prices increased 5.2% in the same time, to reach £521,383.
The supply of properties for sale in the UK dropped 14.3%, while the number of first time buyer registrations rose 7.4% annually across the UK.
The figures, released by Haart, the UK’s largest independent estate agent, suggest once more that supply is not matching demand for first time buyers.
Paul Smith, CEO of Haart, believes London’s slowing of house price rises will only be temporary, and said: “The regions are now leading the way in UK house price growth with the nation’s average house price increasing 10% in the last year, almost double the pace of the London market which saw a 5.2% annual increase.
“However, this is likely to only be a temporary trend as the divergence between supply and demand is much greater in London than the rest of the UK and this will eventually push up prices.
“In London there are 78% more buyers chasing every property on the market than in the UK as a whole, resulting in a much more competitive property market. This explains why property prices in the Capital have risen nearly 4% in the last month, compared to just 1% in the UK as a whole.
“David Cameron’s promise of 200,000 new starter homes is a step in the right direction toward helping first-time buyers onto the property ladder but turning ‘Generation Rent’ into ‘Generation Buy’ won’t be like waving a magic wand. A boost in the level of starter homes is long-awaited and much needed but it is important that the homes built are genuinely affordable. Our data shows the supply of new homes coming onto the market has fallen 14.3% annually across the UK and 18.5% over the same time period in London, demonstrating the need for urgent action if Mr Cameron’s pledge is to be anything more than political rhetoric.”
London by average property prices in September 2015:
All of London - £521,383
Northwest - £448,333
North - £640,419
West - £437,959
East - £471,434
Southeast - £510,673
Southwest - £548,373