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Posts Tagged ‘Property Prices’

Prices for property in London have always been on the steep side and usually reserved for those who can afford to shell out £2-3xx,xxx for a semi or significantly more for a detached house. The average property price in Kensington and Chelsea comes in at just over a million pounds, yes the £1,000,000+ mark will get you a lovely flat, or if you’re feeling frivolous and have £2,000,000+ you could purchase a nice terrace or semi-detached house. Of course these numbers also reflect the fact that a ‘flat’ in Chelsea is usually the size of most houses so we can’t take the figures too much to heart.

Extortionate property prices aside, over the past year we’ve seen an annual increase of approximately 7.6% on property in the Greater London area, with the City of London and Richmond with the greatest increases of 24.4% and 22.3% respectively. There have also been losses in Barking and Dagenham, and the City of Westminster at 9.3% and 9.6% respectively. These figures are quite positive considering the house price crash of 07/08 and are particularly encouraging considering the current economic climate.

We must remember however that the Stamp Duty holiday for properties underneath the £175,000 threshold was applicable last year which would have artificially increased prices and sales, as January 2010 saw mortgage applications half, with only a 6% increase in February.

So over the board it’s a very shaky time for people looking to purchase a property, the rule of thumb tends to be expect property prices to double every 10-15 years, in London this figure seems to be a little shorter at 7-10 years as demand to live in the inner city will always outweigh the demand to live in the middle of no-where. However one must question have much further London can expand before we have to build another M25 around outer London.

For those of you looking to purchase a property in London and would like the best deal on your mortgage have a quick look at our mortgage calculator, then proceed to get a free quote from a dedicated advisor.