Residential property prices in London continued to grow up until a week ago, as the market recovered following Boris Johnson’s election win, official figures showed today, as UK house prices also rose.
A sharp rise in buyer activity across many areas of the UK has created upwards pressure on asking prices across many parts of the country, especially in London, according to research released by Rightmove this morning.
This uptick in activity has led to an increased number of agreed sales, which are up by 6% year-on-year nationally and 18% in London.
Marc von Grundherr, director at Benham and Reeves, said: “London is back with a bang. An annual increase in asking prices of 5.1% is the highest level that we have seen in years and is as a consequence of buyer demand coming back strongly in all price ranges.
“It now takes 15 days less to sell a home in London than it did a year ago and we are seeing a return to a sellers’ market from one that has favoured buyers since 2015.”
Steve Moss, founder and CEO of Sourced Capital, the peer to peer property investor platform, has cautiously welcomed the latest data from Rightmove given current circumstances relating to the current outbreak of Coronavirus.
He commented: “Delving a little deeper into the weeds highlights some interesting trends for those of us whom are not quite so obsessed with London and the South East, in that we’re seeing continued strength in prices and in transaction times in the Midlands, the Yorkshire counties, the North East and Scotland.
“The regions have been consistent in showing market grit in recent months and therefore a pound invested in property in one place is no longer the same as a pound invested elsewhere.
“Is the dominance of the south giving way to the so-called Northern Power House at last? That might well be the case especially now that foreign buyers that have long favoured the capital have also just been slapped with a 2% purchase penalty by the new chancellor.”