A recent report revealing the average cost of a London home could reach £1 million within the next five years is a potential wake-up call for many aspiring investors and home buyers.
House price increases are traditional in the autumn, as the holiday season comes to an end and people resume their plans to move or relocate. However, London, it appears, has seen an unusually sharp rise in the price of a newly-marketed home this year.
According to the UK’s largest property portal, Rightmove, the average price of a residential property in London has risen by 2.2%, or by a dramatic £13,177. With the average price of a London home now estimated to be £620,003, and the annual rate of price growth in the capital currently 9.5%, the online real estate agent is predicting the average price of a London home could reach £1 million by 2020.
Commenting on the Property Wire website, Miles Shipside, director and housing market analyst at Rightmove, said:
“The average price tag on a newly-marketed property is £53,923 higher in September this year than last and if this trend were to continue it would hit £1 million in just over five years. While we are not suggesting that this level of growth can or will be maintained, this extrapolation illustrates the desperate need for more building and more affordable housing in and around the capital.”
External influences such as the recent UK election results may have distorted supply and demand, attracting an upsurge in sales. However, Rightmove’s predictions are interesting, and if the current desire for residential property London continues, we are likely to see year-on-year growth for some time to come.
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