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The average home in London could hit £1million by 2020
New research by Rightmove has indicated that the average price of a property in London could hit the £1million mark by 2020 – that’s if property prices continue to rise at the rate they are now.
Asking prices have seen an average rise of £2,550 this month alone, rising to just shy of £295,000 across the UK. We explored the asking prices for the rest of the UK in a previous blog post, which you can read by clicking here >
However, according to the research, the average asking price of a Greater London property has risen by 2.2% on last month. That’s a change of nearly £13,000 on average.
Unsustainable price rises in the capital
While the average price of a new property on the market in Greater London was a huge £607,000 as of August this year, there was a monumental leap to £620,000 in September. When compared with last year, the capital has seen a dramatic increase in average asking prices of nearly 10%, which works out at £53,932 on average!
Although this steep increase in house prices is unlikely to be sustainable, it does cause huge issues for those living in London and trying to get onto the property ladder.
Cheap borrowing, the reluctance of homeowners to sell up and a lack of supply of suitable properties are the reasons given by Rightmove for the surge in asking prices.
A southern problem
Some southern counties have witnessed faster asking price growth than London over the past year, which suggests the issue is not just restricted to London. Places like Hertfordshire, Berkshire and Essex have seen dramatic spikes of around 11% on this time last year, where Cambridgeshire has seen a rise of 11.6% in the past year.
The average asking price in the East of England has sky-rocketed by nearly 9% in the last year, while the South East did by 6.3%. Average asking prices in the South East are now close to £390,000.
Regardless of these large increases in the south, all the northern regions saw falls on asking prices over the past month. Although the overall asking prices in the north have risen, it is by dramatically lower figures than can be seen in the south.