Movers are flocking back to London as the spectre of the Covid-19 crisis over the capital’s housing market fades away, reveals fresh figures published today.
The scrapping of restrictions on daily life to curb infections and the return to the office is driving homebuyers to put London back at the top of their desired locations.
An uptick in demand has sent prices for London homes soaring at the fastest rate in six years, according to property site Rightmove.
The cost of a home in the capital is now £667,000, 7.3 per cent higher than a year ago.
The reopening of London’s social economy, coupled with workers meeting their bosses’ calls to get back into the office has led movers to prioritise the capital once again.
“More businesses are encouraging a return to the office,” Tim Bannister, director of property data Rightmove, said, adding the reversion to pre-pandemic working practices has created “a group of movers who are looking to return closer to major cities”.
London registered the biggest jump in enquiries about available houses of any region in the UK last month at 24 per cent.
A shortage of homes is creating severe supply and demand mismatches which are pushing property prices across Britain up sharply.
Over the last month, UK house prices accelerated at the quickest pace since Rightmove started tracking the data two decades ago, climbing 2.3 per cent to a record £348,804.
The property market is being primarily driven by Brits pulling the gun on a “second stepper” home, with many buyers selling their existing homes and moving into a larger house with a garden.
Homeowners are rushing to list their properties to avoid missing out on their dream home, Rightmove said.
The booming property market comes despite UK households being gripped by the worst cost of living squeeze in a generation, underlining the strength of demand among prospective buyers.
Real take home pay is expected to shrink at the worst rate since the late 1940s if inflation climbs to the Bank of England’s 7.25 per cent forecasted peak.