London property prices climb 10% year on year

London property prices climb 10% year on year

The price of property in London has risen by ten per cent year on year, largely thanks to the fact there have continuously been swells in demand for homes, especially since the Conservative government won the election in May, bringing a perceived sense of stability to the market nationwide. 

Across the nation, there was a 0.4 per cent month on month rise in October, according to the latest data published this week by the Land Registry. And it said that the average for all regions was 5.6 per cent when looking at price rises on an annual basis.

This takes the current average across the UK to £186,350, continually challenging the heights not seen since the market hit its peak in 2007. 

However, the strength of the capital's property market is such that exists in a bubble all on its own, and in the last year, London prices have climbed by around ten per cent, according to the Land Registry. 

Adrian Gill, director of Your Move and Reeds Rains, said of this price rise that it now takes the average final sale value in the capital above half a million pounds. He also went on to say that the price of property in London is rising all the time and really gaining pace. 

Looking forward, with the number of people looking to buy second homes in the capital likely to swell in the months before the new stamp duty surcharge comes into play in April, Mr Gill expects prices to continue to rise in the capital for some time. 

There is one change in the market in London this year that people might not have expected, however. While the price on average has been brought up by the ever increasing price of homes at the bottom of the ladder, the sale of million-pound plus homes has seen a real fall in the last few months. 

When the new stamp duty bands were introduced last December, it was generally seen as good news, because the price of purchasing would fall somewhat for most people. However, for those buying at near a million pounds, the price of stamp duty increased, and this has meant a drop in sales in 2015 as a whole. 

The Land Registry reports that in 2015, the number of homes sold for over a million pounds was 1,280. This was down by 13 per cent when compared to the year before.