London house prices up £43,115 in six months as market soars
23 July 2014 1:35am
The price of an average house in London has risen by £43,115 in the first six months of this year alone, according to astonishing figures from Zoopla, more than the annual salary of an average electrical engineer.
By the property website’s reckoning, average property prices in London have risen 8.2 per cent between January and July, surging up to £567,392 for a typical home.
In the south east of England, a 7.4 per cent boost in prices over the same period has raised values by £23,031, around the same amount as the pay of the average joiner in 2013.
Across the country, house prices have been rising by an average of £90 per day since January, according to the figures.
Zoopla identifies Salford as the town where prices have climbed most quickly since the start of the year, with a rise of 12 per cent. However, in cash terms the increase is much smaller, with an increase of just £14,874.
Further research released this morning showed that the yield on central London’s buy-to-let properties was dropping. The data was compiled by BM Solutions, a buy-to-let branch of Lloyds group, and BDRC Continental.
The rental yield on properties in zone one and two has dropped to 5.5 per cent, from 5.9 per cent in the first quarter of the year. The yield could drop even further as interest rates began to rise, increasing buy-to-let investors’ mortgage payments.
“London has long been seen as the centre of the rental market, with demand outstripping supply and the shortest void periods. However, for the greatest return looking further afield maybe just as an attractive option with rental yields clearly higher out of the capital,” said Phil Rickards of BM Solutions.
In other news
Talks between Network Rail and RMT bosses are continuing into the evening as the two sides try to negotiate a [Read more]
Sepp Blatter's reign as Fifa president will be four times as long as the average tenure of bosses at FTSE 100 [Read more]
Emirates Airline has been confirmed as the new sponsor of the FA Cup on the day of the cup final which will see [Read more]
Newly re-elected Fifa president Sepp Blatter has given a press conference in Zurich where he answered the many [Read more]
Sir Tim Berners-Lee, the inventor of the World Wide Web, has warned of encroaching government powers after plans [Read more]
Sepp Blatter will be Fifa president for a further four years after comfortably beating Prince Ali Bin Al-Hussein [Read more]
Ukip's Lord Pearson of Rannoch has asked the government to back a draw Mohammed competition. [Read more]
Network Rail and RMT bosses are once again entering talks to see if the latest set of strikes, announced yesterday, [Read more]
IMF chief Christine Lagarde said this morning that a comprehensive deal with Greece is "very unlikely... in the next few days". [Read more]
Good news multiple-gun salute fans. Next week there will be not one but two such events, marking the 62nd year [Read more]
An EasyJet flight from Luton to Tel Aviv has been forced to turn back after multiple cabin crew members reported [Read more]
A vehicle has struck a bridge it was passing under in Tulse Hill, south London, causing train cancellations and [Read more]
Shares in troubled insurance claims outsourcer Quindell fell in late morning trading after the company announced [Read more]
After a number of top Fifa officials were arrested on accusations of bribery and racketeering this week, the already [Read more]
The mother of the children who died at a Thomas Cook-approved hotel in Corfu has slammed Harriet Green's decision [Read more]
The meteoric rise in London office rents is unlikely to slow down for at least another year, the chief executive [Read more]
Andy Burnham will today admit that Labour got it wrong on business and the economy, and that the party cannot [Read more]
The German Chambers of Commerce and Industry has said it is “astonished” that the UK is considering leaving [Read more]
When it comes to creating new technologies, London is a long way behind other cities in the UK, new research has [Read more]
Four FinTech startups have won $100,000 (£65,400) backing from Citi after a search for new technology and innovation [Read more]
Property types may have been worried about the looming spectre of a mansion tax during the run-up to the General [Read more]
Corruption allegations, arrests of top officials, global outrage - in most organisations such calamities would [Read more]
Are the UK's new crop of MPs actually any good at social media? [Read more]
Donmar Warehouse | ★★★★★ [Read more]