London house prices: which boroughs are on the rise?
Analysts wary of market volatility after coronavirus pandemic prompts economic downturn
The average price of properties on sale across London is up 5.1% year on year in March, despite fears that coronavirus will soon hit the market.
Rightmove, which published the new figures in its monthly House Price Index today, said it was the “highest annual rate of growth since May 2016”, putting the average house price in Greater London at £638,826.
The number of sales agreed also surged by 34.4% compared to this time last year.
In January, average property prices had fallen annually in 13 boroughs, but this month only one borough had a negative yearly change: Havering. The rest had all increased, except Wandsworth, which remained the same.
Lambeth saw the biggest increase in prices compared to March 2019, a rise of 8.6%.
However, experts have warned that it is “hard to predict” how coronavirus will affect market prices going forward, particularly after the disease prompted major economic downturns across the globe.
The Telegraph suggests that homebuyers will be “concerned by parallels between the current situation and the financial crisis”, but believes that “the picture today is fundamentally different, with large house price falls unlikely”.
Andrew Burrell, of research firm Capital Economics, told the paper that the market “will probably grind to a halt, as people won’t be wanting to go out for viewings or have strangers in their home”, but added that “because there will be both fewer sellers and fewer buyers, I don’t see any big changes in prices”.
Miles Shipside, Rightmove director and housing market analyst, added: “The market has been waiting several years for a London recovery.
“With a window of post-election political uncertainty, 2020 seemed set to be the year when many would look to make a move and satisfy their pent-up housing needs. However, the current fast pace of the housing market could now be affected by the spread of the Covid-19 coronavirus.”
Here are the boroughs listed by the largest annual increases.