London house prices rise by 10% in just one month Go compare with our comparison table

London house prices rise by 10% in just one month

04 November 2013 / by Isabel Buxton

London real estate has historically been an expensive proposition, and recent research from leading property website Rightmove suggests that this trend is continuing, with house prices in the capital shooting up by 10% in just one month. The average price asking price went up from £493,748 to £544,232 between September and October – a rise of more than £50,000.

Pricing buyers out of the market

 
Rightmove put much of this activity, which it described as a ‘frenzy’, down to wealthy overseas investors purchasing central London properties in desirable locations. Within prime inner London, the average asking price for a home now stands at £937,110, while the average asking price of London’s outer boroughs is now £461,937. Rightmove director Miles Shipside comments that this development “eats up a much-needed source of fresh supply and drags up existing property prices at an even faster rate.”
 

Help to Buy scheme offers an alternative

 
This rapid house price growth in the capital over recent months has led to suggestions that the Government’s new Help to Buy should exclude London, or that the current £600,000 limit should be lowered to around £300,000 for London properties, amid fears of a house price bubble emerging in the city. However, David Hollingworth, of London & Country, counters that: “If you are a first-time buyer in London, you could argue that you are one of the most in need of the Help to Buy scheme.”
 
Whether you’re looking to buy a property in London or elsewhere in the UK, the Help to Buy scheme could be an option if you are having trouble raising the necessary deposit. Click here to see a range of Help to Buy mortgage deals >> 

This article aims to give information, not advice. Always do your own research, and/or seek out advice from a regulated broker, before acting on anything contained in this article. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

© Fair Investment Company Limited

 

Help To Buy Mortgage Deals

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed

4.10%

Reverts to 3.75%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

4.10%

Reverts to 3.75%

2

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 3.90% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55%

Reverts to 4.00%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.
Fixed

4.55

Reverts to 3.75%

5

Years

95%

NoMore Info >
Early redemption charges may apply. Overall Cost for Comparison 4.20% APRC. This is the cost of the mortgage over the full term.

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.