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London house prices break through the £600k barrier

London house prices break through the £600k barrier - England & Wales House Price Index, April 2016

  • Home values in London double over the last seven years, rising 11% year-on-year in April – more than any other region
  • Fastest year-on-year house price growth across England & Wales since December 2014 – up 8.9% annually in April
  • Record high for house prices in 9 of the 10 regions, with overall average home values now approaching £300,000
  • April sees 20,000 fewer sales than usual during the month, after March’s stamp duty rush squeezes supply of homes

Adrian Gill, director of Your Move estate agents, comments: “Homeowners have been basking in the spring sunshine this April, on the back of the fastest year-on-year growth in property prices since December 2014. The typical home in England and Wales is now worth £24,280 more than a year ago, with property prices rising 8.9% since April 2015 – meaning they now stand tantalisingly close to £300,000. This acceleration in home values comes when many had expected house prices to dip due to a natural decline in demand from buy-to-let and second home buyers. 

However, after an exceptional March, there is now a severe shortage of properties on the market, with fierce competition between buyers for each available property. Clearly, the Government’s offensive against landlords has not eased the way for other buyers, as property prices continue to pick up pace – growing by nearly 50% over the past seven years, with prices rising from £204,875 in April 2009 up to £298,030. With the maximum value of the government’s flagship starter homes capped at £250,000, first-time buyers may soon see a lot less property for their money. George Osborne needs to increase incentives to sell and relax planning restrictions if he truly wants to fulfil the homeownership dreams of young people.

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