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.
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