Westminster house prices show on London decline over New Year
The Elizabeth Tower in Westminster
The City of Westminster was the only London borough to experience declining house prices in January, despite an annual rise of 13.1%, according to new reports.
The latest Land Registry House Price Index reveals that the City of Westminster underwent a 0.1% decline in houseprices in the New Year, shrinking to an average house price of £862,053.
Annually however, its growth fell in line with surrounding boroughs, closely mirroring Haringey, which grew by 13.3%, and topping Camden, which rose by 8.1%.
The highest annual rise in a London borough was Hackney with 20.4% growth and house prices averaging £526,361.
Across Britain, average house prices have increased across the board since January 2013, but London stands out with a 10.9% annual change. The next highest is the South East with 6.4.
David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, said: “The property market is reaping the fruits of the wider economic recovery. Confidence is clearly on the rise, creating a buoyant atmosphere in the housing market.
“But there’s a flip-side. With far more people entering the market, we simply need more homes – beyond the level of current new house building and movers coming to the market.
“Most of the ingredients are there for a good housing market – we need action from the Government to help stimulate more house building more quickly to keep pace with the growing need and demand for more housing.”
Peter Rollings, CEO of Marsh & Parsons Estate Agents added: “It’s great to see ripples of growth spreading throughout the country, with the North East experiencing the highest monthly price rise of 2.6% in January.
“But the London market is still surging ahead the rest of the UK, with a 10.9% annual increase in prices in January. Average property prices in the capital are nearly three times the nationwide average, and with the disconnect between supply and demand currently at a four-year high, prices are likely to continue this upwards momentum.”