Market Overview: Promising News as the Average London Property price is now over £500,000

Contrary to recent reports that the market may be indicating signs of stagnation new research from the estate agent, Haart, suggests that with an annual rise of more than 26% and month-on-month growth of just above 4%, the average London property price is at £501,056.

UK new buyer registrations have also increased and are up nearly 11% annually. This contrasts to the supply of property which has dropped 1.7%.

Indeed, this means that London homeowners have earned an average £100,000 in equity over the last 12 months with London property prices breaking new records and over 30% above their 2007 peak.

These prices are a reflection of supply issues which are particularly grave over London. This is impacting income multiples which are failing to keep pace with asset growth. Although this indicates a strong recovery it needs to be remembered that London’s resurgent market is a fragile one which needs to be monitored.

The Council of Mortgage Lenders have measured gross mortgage lending to be £16.6 billion in April. These figures are promising as these figures are 8% higher than March and 36% higher than April in 2013. It is the highest total for an April since 2008.