London house prices ‘consistently outpaced’ by regional markets
Capital’s annual growth was 5.1% in November – compared to 10% across the UK
The average property value in London was £519,934 in November 2021, according to data published by the HM Land Registry. The latest UK House Price Index found that London had the lowest monthly price growth, 0.2%, and lowest annual price growth, 5.1%, of any region in the UK.
House prices in London were “consistently outpaced” by regional property markets throughout the pandemic, the London Evening Standard reported. This was in part because of the “race for space” during lockdowns and also because stamp duty had a “much bigger impact on buyer demand” outside of the capital.
With the average home in London now costing nearly £520,000, this “limits affordability and so price growth”, said Jamie Durham, an economist at PwC UK. While there remains “considerable uncertainty” in the outlook for the market, “we do expect prices to continue to rise in 2022 but at a slower rate than seen in 2021 as conditions start to normalise”. The “most significant risk” to the outlook is the “ongoing pressure” on the cost of living, he added.
Average price by property type for London
|Property type||November 2021||November 2020||Difference %|
UK average climbs to £270,708
While London’s annual price growth of 5.1% was the lowest of any region in England, the south west experienced the highest with 12.9%, according to the Land Registry data.
Across the UK house prices increased by 10% in the year to November 2021 and by 1.2% since October 2021. This takes the average property value in the UK to £270,708 – which is £25,000 higher than this time last year. Average house prices increased over the year in England to £288,130 (9.8%), Wales £199,877 (12.1%), Scotland £183,000 (11.4%) and in Northern Ireland to £159,000 (10.7%).
Any fears that the end of the stamp duty holiday would bring about a decline in house price growth “can now be well and truly put to bed”, said James Forrester, managing director of Barrows and Forrester. Not only has the market “maintained momentum”, but it’s continued to “shift through the gears during what is usually a quieter period in the year”.
Expect more of the same in 2022, Forrester added. “Demand remains robust, stock remains scarce and the cost of borrowing remains very affordable.”