London house prices up by 10 per cent in October and first-time buyers bear the brunt - Rightmove

Chris Papadopoullos
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UK house prices are now at a record high, according to the figures from Rightmove (Source: Getty)

There's just no end to it. London house prices are 9.8 per cent higher than they were in October 2014, data released today by online property market Rightmove reveals.

Nationally, house prices rose 5.6 per cent year-on-year with first-time buyer properties leading the way at 9.6 per cent.

The number of properties coming to the London market was down by 16.2 per cent compared with October last year. Only four boroughs out of 32 have a greater supply of properties coming to the market than the same month in 2014.

“With fewer properties coming to market, let alone the right ones at the right price, demand is still not being satisfied in many areas,” said Rightmove director Miles Shipside. Average prices were up most on the year in Tower Hamlets, where prices are up 18 per cent, and Newham, where they have risen 18.1 per cent.

Read more: Buy to Rent scheme aimed at slowing down London house price growth

Rightmove said that many lettings agents across the country were rerpoting “same-day” rentals and little or no property to rent. It also said the number of first-time buyer properties coming to the market was down eight per cent on the year, exacerbated by first-time sellers struggling to with the second-step price gap.

Shipside added:

With local authorities, housing associations and developers no longer satisfying the country’s housing needs, those in particular looking to rent or buy smaller homes must hope for the cavalry to come to their rescue, in the form of government action or large-scale institutional investment.

Initiatives such as continued relaxation of planning rules to boost building, 200,000 new affordable homes available to buy over the next five years, or American-style institutional investment in the rented sector will take time to come over the hill, as the sound of bugles is still in the distance.

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