UK house prices: Asking prices of London homes hit a new record this month in spite of the looming General Election

Shruti Tripathi Chopra
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Typical family homes saw the biggest price rise, recording a 5.4 per cent year-on-year jump (Source: Getty)

Asking prices of London homes hit an all-time high this month, according to Rightmove's latest house price index.

The greater London average for properties coming on the market in May hit a record high of £649,864, a 2.1 per cent (£13,087) rise since last month. However, the annual rate of increase remained subdued at 0.9 per cent overall, with both inner (0.6 per cent) and outer London (1.2 per cent) seeing a small year-on-year change.

Rightmove added that London’s new seller numbers were up by four per cent month-on-month.

Read more: This is how UK house prices are changing ahead of the General Election

Across the UK, the prices of properties coming to market rose 1.2 per cent (£3,626) this month to a national average of £317,281 – setting a record for the second month in a row.

Rightmove said: "Pre-election periods typically cause a pause in activity, but this price growth and strong year-to-date numbers of sales agreed indicate that many are undeterred."

London average asking prices

Area May 2017 April 2017 Monthly change Annual change
Greater London £649,864 £636,777 2.1 per cent +0.9 per cent
Inner £834,229 £803,346 3.8 per cent +0.6 per cent
Outer £526,404 £525,969 0.1 per cent +1.2 per cent

Typical family homes saw the biggest price rise, recording a 5.4 per cent year-on-year jump.

This is the fifth consecutive monthly price rise nationally. However, the rise in UK property prices was higher in February (two per cent) and March (1.3 per cent) this year.

Read more: Investing in property? Here's where to put your money to maximise gains

Miles Shipside, Rightmove director and housing market analyst, said: “More properties have come to market than in the previous month, despite the approach of polling day often causing potential sellers to delay.

"In addition, the average asking price of newly-marketed property has hit an all-time high, at just shy of £650,000. Time will tell how close these sellers get to their asking prices, but the uncertainty associated with an election has not deterred them from trying in increasing numbers and at an increased average price.

"While some sectors and areas of the London market are finding it harder to sell, this election, unlike the one in 2015, does not introduce uncertainty over the unknown factor of a mansion tax. The market knows what taxes are due, and while they are very substantial in the upper sectors, we are well over two years through the process of re-adjusting to their effect.”

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