By Laura McGuire
Londoners’ desire to get on the property ladder has helped fuel the housing market in the capital, despite households now needing an extra £12k in income to be able to afford their own place.
Figures released by Zoopla, show that in April house price growth in London rose by 0.5 per cent, as demand and market activity in the capital continued to outperform other Southern regions in the UK.
However, the average household income in London required to buy a two-bed home is now £97k up from £91k in 2020, and a three-bed home is £115k up from £103k almost three years ago.
“Demand and market activity in the London sales market is doing better than in other regions across Southern England. This is because house prices have lagged behind the rest of the market since 2016,” Richard Donnell, executive director at Zoopla said.
London house prices spike though flats offer some respite
As prospective buyers continue to feel the squeeze of high inflation and rising living costs, Donnell said that Londoners are also seeking out inner city flats, as the value of these pads are now the same as in 2016 – down 24 per cent in real terms.
“Inner London flats are looking like better value for money compared to houses in adjacent commuter markets – they aren’t cheap but do provide better value and are attracting demand from renters facing steep rental increases,” Donnell continued.
It comes as renters in London have been faced with soaring renting costs as landlords have been forced to hike prices as interest rates on mortgages continue to rise, driving many tenants which have the funds to seek out their own home in the city.
“Despite the bank holidays, London’s property market saw no signs of slowing down in April and our branches continued to receive a steady stream of buyer enquiries,” Matt Thompson, head of sales at Chestertons, said.
He added: “Whilst areas such as Richmond, East Sheen and Barnes remained popular with families who require houses, we have seen particularly high demand for one and two bedroom apartments within London zones 1 to 3.
“Spearheading the search for apartments are first-time buyers but also young professionals and second steppers who are seeking a property in close proximity to work.”
London house prices continue to lead the rest of the country by some distance.
The post London house prices: First-time buyers need household income of nearly £100k to buy appeared first on CityAM.
