Over the last several months London house prices have steadily risen across most parts of the UK. With some areas seeing an overall increase of 1% – 2% over the last 12 months, it may come as a surprise to learn that London has seen an overall increase of around 8.1%, according to the Evening Standard. Quite a rise when you consider the next best area of the country has been the West Midlands which has seen a rise of just 3.1%.
Some good news to say the least, especially when you consider that most were predicting a slower rise in house prices with ‘flat’ being the buzz word not 12 months ago.
One of the things that this tells us is that London is still without a doubt, the place to live, is while prices have been rising across the board, the nation’s capital is seeing property prices rise considerable quicker.
London House Prices - Supply and demand
At the end of the day, the most important factor to consider when looking at London house prices is supply and demand, and as the demand to live in the capital continues to increase, so will the value of London houses.
The good news is, if you’re thinking of buying in London, property prices are expected to continue to rise over the coming years with Savills predicting a rise of between 20% and 26% for properties in and around London over the next five years. If this is accurate, the rise in value of the average property in London will be somewhere in the region of £100,000 by 2018.
London House Prices - Interest rates
If you own your property in London, the chances are, your mortgage payments won’t shift too much. Two year fixed rates are currently available at under 1.5%, a rate which has never been bettered and it looks like this may continue over the coming years, or perhaps get even better.
All in all the property situation in London is looking good, with interest rates at an appealing low figure and prices steadily on the rise, home owners can look forward to more equity in their property and buyers can look forward to buying while prices are still on the up. The rocky road that house buyers and home owners have had to travel in London over the past several years looks to be evening out and at last and a bright future is certainly on the horizon for London House prices.
Article by Armun Peeroozee an expert on London property prices and Lettings Manager for Hunters West Hampstead branch. Follow Armun on LinkedIn by clicking HERE.