Wednesday, October 4

London housing market on the up after six months of flatlining



The average home in the capital cost £510,000 in January – up 1.6 per cent from £502,000 in December, and back up towards the £514,000 peak seen in August 2014.

Nationally, prices rose £1,000 to an average of £273,000.

Over the past year, London prices rose 12.8 per cent while UK-wide prices rose by 8.3 per cent.

Both low interest rates and the change in pension rules are expected to keep pressure on the market.

“So-called ‘Granlords’ with­drawing their annuities to fund buy-to-let investments are another party competing for the same stock of housing,” said Richard Sexton from surveyors E.Surv.

“Potential buyers are coming in from all directions to buy into a constricted supply of property on the market, and time is ticking to build more homes.”