London house prices have climbed 11 per cent over the last 12 months, with the cheapest boroughs rising at the most rapid rate.
The fastest growth was in Barking and Dagenham, according to the data published today by property website Rightmove. Asking prices in the borough, the capital’s cheapest, are 23.5 per cent higher this month than in the same month last year.
Cooldowns at the top ladder continue. Prices in Kensington and Chelsea, London’s most expensive borough, are down 0.5 per cent on the year. However, the average asking price is £2.35m.
Of the 10 cheapest boroughs, seven posted double-digit growth rates in asking prices, compared to five in the top 10. An influx of new properties to the market in inner-London has put downward pressure on prices, Rightmove said.
“More stock for sale and diminished appetite among buyers to pay higher prices mean that sellers have to cut their prices to attract scarcer or more wary purchasers,” said Rightmove director Miles Shipside.
“The momentum has been lost due to a less positive property vibe, with buyers now pitching offers in at lower levels in previous top dollar locations.”
Estate agent Hamptons International published research today suggesting it would take 46 years for a first-time buyer to save up for a typical London deposit. The England and Wales figure was 13 years.
Hamptons' data is based on the assumption households save 22 per cent of their income after tax and essentials while wages and house prices rise in line with forecasts from the Office for Budget Responsibility, the government’s fiscal watchdog. It also assumes first-time buyers would be aiming at homes with a value of 85 per cent of the regional average.
Using the government’s help to buy scheme, it is possible to buy a house with a five per cent deposit in London provided it is a new build below £600,000.