Stock image of for sale signs
(Picture: PA Wire)London property prices are rising at their fastest rate for more than five years as buyers flood back into the market, according to official figures on Wednesday.
Land Registry data showed that the average cost of a home in the capital surged 8.1 per cent in February to a new record high of £529,882.
It means London prices have risen by more than £55,000 since the start of the pandemic.
The increase in February alone was 2.24 per cent, adding £11,600 to the value of a property, but making it ever harder for young buyers to climb on or up the property ladder.
The London property market still lags the 10.9 per cent national rise in prices but is rapidly catching up, fuelled by a shortage of properties for sale and a surge in buyers.
Guy Gittins, chief executive of agents Chestertons, said: “If 2021 was defined by a race for space and people moving out to the suburbs, 2022 has been seeing an absolute boomerang effect with house hunters rushing back into the capital.”
However, some agents said rising costs would snuff out the mini-boom.
North London agent Jeremy Leaf said: “Demand is still well ahead of supply but concerns about the rising cost of living, squeezed pay packets and potentially further interest rate rises are reducing price growth and transaction numbers. Looking forward, we expect activity to return to more ‘normal’ pre-pandemic conditions as supply picks up as part of the usual spring bounce.”
