The average house price in London increased slightly year-on-year as of June 2024, amid a slowdown in the UK housing market. Barking and Dagenham was the most affordable borough to buy a house, with an average price of 340,403 British pounds. Kensington and Chelsea stood at the other end of the spectrum, with an average price of 1.2 million British pounds. Nevertheless, it was also one of the boroughs where prices fell the most. Demand for housing and house prices With vastly more job and cultural opportunities, megacities continue attracting people from all over the world. Since the beginning of the 1980s, the population of London has increased by more than 2 million inhabitants and in the next 20 years, it is forecast to increase by almost 1.5 million. That makes London properties a valuable asset. Historically, property prices in London have risen steadily, albeit minor fluctuations. Residential properties transactions Since 2006, the number of residential property sales has varied between 1.7 million and 0.8 million transactions annually. The housing boom in 2021 led to an increase in home purchases, but the economic uncertainty, stubborn inflation, and dramatically higher interest rates have led to transactions falling.

The average mix-adjusted house price in London, England, peaked in August 2022, followed by a slight correction in 2023. In June 2024, the average house price amounted to about 523,134 British pounds, up from 519,795 British pounds a year ago. These recent fluctuations have also been observed by other measures, such as the house price index. The house price index is an important measure for the residential real estate market and is used to show changes in the value of residential properties.

The average price of houses bought by first-time buyers was notably lower than houses purchased by repeat buyers in London in 2023. Homebuyers spent on overage 383,000 British pounds when purchasing their first property in 2023. For repeat buyers, this figure amounted to 657,000 British pounds in that year. In London, the average house price was about 590,000 British pounds in 2023.

This statistic illustrates the average house prices in London by local authority district as of December 1997 and December 2017. the graph shows the price rises that have occurred for housing in a twenty year period. The average house price in Kensington and Chelsea at the end of 1997 was over 265 thousand British pounds which rose to over 1.21 million British pounds in 2017. The entirety of London has seen huge price increases over the last twenty years.

Median price paid for residential property in England and Wales by property type and electoral ward. Annual data.

The house price index in London reached 129.9 index points in June 2024, which was an increase from a year ago, despite a mild correction. The house price index (HPI) is an easy way of illustrating trends in the house sales market and help simplify house purchase decisions. By using hedonic regression, the index models property price data for all dwellings and shows how much the price has changed since January 2015. How have regional house prices in the UK developed? House prices in other UK regions have risen even more than in London. In the North West, the house price index exceeded 160 index points, ranking it among the regions with the highest property appreciation. The UK house price index stood at 151 index points, suggesting an increase of 51 percent since 2015. Average house prices Location plays a huge role in the price of a home. Kensington and Chelsea and City of Westminster are undoubtedly the most expensive boroughs in London, with an average house price that can exceed one million British pounds. In comparison, a house in Barking and Dagenham cost approximately one third. Nevertheless, the housing market is the busiest in the boroughs with average house prices.

Median price paid for residential property in England and Wales, by property type and administrative geographies. Annual data.

The UK housing market continued to show significant regional variations in 2024, with London maintaining its position as the most expensive city for homebuyers. The average house price in the capital stood at 519,579 British pounds in October, nearly double the national average of 292,059 British pounds. However, the market dynamics are shifting, with London experiencing only a modest 0.2 percent annual increase, while other cities like Newcastle upon Tyne and Belfast saw more substantial growth of 8.8 percent and 6.8 percent respectively. Affordability challenges and market slowdown Despite the continued price growth in many cities, the UK housing market is facing headwinds. The affordability of mortgage repayments has become the biggest barrier to property purchases, with the majority of the respondents in a recent survey citing it as their main challenge. Moreover, a rising share of Brits have reported affordability as a challenge since 2021, reflecting the impact of rising house prices and higher mortgage rates. The market slowdown is evident in the declining housing transaction volumes, which have plummeted since 2021. European context The stark price differences are mirrored in the broader European context. While London boasts some of the highest property prices among European cities, a comparison of the average transaction price for new homes in different European countries shows a different picture. In 2023, the highest prices were found in Austria, Germany, and France.

Median price paid for residential property in England and Wales, by property type and Middle layer Super Output Area (MSOA). Quarterly rolling annual data. Formerly HPSSA dataset 2.

The average house prices for detached and semi-detached dwellings in London declined in 2023 after several years of strong growth. In 2023, the simple average price of a detached house amounted to 1.14 million British pounds, which was a decline from the previous year when the average price was 1.21 million British pounds. Semi-detached houses were notably less expensive, with the average price totaling 749,000 British pounds in 2023.

Quarterly house price data based on a sub-sample of the Regulated Mortgage Survey.

According to the forecast, house prices in London are expected to fall slightly in 2024, followed by a recovery in the following years. The decline can be explained with the cost of living crisis and the dramatic increase in borrowing costs. As the economy recovers in the next five-years, house prices for mainstream properties are forecast to rise by almost 14 percent. In 2023, the average house price in London ranged between 350,000 British pounds and 1.4 million British pounds, depending on the borough. Barking and Dagenham, Bexley, Newham, and Croydon were some of the most affordable boroughs to buy a house.

FOCUSON**LONDON**2011: HOUSING:A**GROWING**CITY

With the highest average incomes in the country but the least space to grow, demand for housing in London has long outstripped supply, resulting in higher housing costs and rising levels of overcrowding. The pressures of housing demand in London have grown in recent years, in part due to fewer people leaving London to buy homes in other regions. But while new supply during the recession held up better in London than in other regions, it needs to increase significantly in order to meet housing needs and reduce housing costs to more affordable levels.

This edition of Focus on London authored by James Gleeson in the Housing Unit looks at housing trends in London, from the demand/supply imbalance to the consequences for affordability and housing need.

REPORT:

Read the report in PDF format.

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PRESENTATION:

How much pressure is London’s popularity putting on housing provision in the capital? This interactive presentation looks at the effect on housing pressure of demographic changes, and recent new housing supply, shown by trends in overcrowding and house prices. Click on the start button at the bottom of the slide to access.

View Focus on London - Housing: A Growing City on Prezi

HISTOGRAM:

This histogram shows a selection of borough data and helps show areas that are similar to one another by each indicator.

Histogram

MOTION CHART:

This motion chart shows how the relationship, between key housing related indicators at borough level, changes over time.

Motion Chart

MAP:

These interactive borough maps help to geographically present a range of housing data within London, as well as presenting trend data where available.

MAP

DATA:

All the data contained within the Housing: A Growing City report as well as the data used to create the charts and maps can be accessed in this spreadsheet.

FACTS:

Some interesting facts from the data…

● Five boroughs with the highest proportion of households that have lived at their address for less than 12 months in 2009/10:

1. Westminster – 19 per cent
2. Wandsworth – 17 per cent
3. Camden – 16 per cent
4. Lambeth – 14 per cent
5. Southwark – 13 per cent

-31. Harrow – 6 per cent

-32. Havering – 5 per cent

● Five boroughs with the highest percentage point increase between 2004 and 2009 of households in the ‘private rented’ sector:

1. Newham – 17 per cent
2. Greenwich – 11 per cent
3. Enfield – 10 per cent
4. Camden – 9 per cent
5. Harrow – 8 per cent

-32. Islington – 1 per cent

-33. Bexley – 1 per cent

● Five boroughs with the highest percentage difference in median house prices between 2007 Q4 and 2010 Q4:

1. Kensington & Chelsea – 29 per cent
2. Westminster – 19 per cent
3. Camden – 15 per cent
4. Islington – 14 per cent
5. Southwark – 10 per cent

-31. Newham – down 9 per cent

-32. Barking & D’ham – down 9 per cent

Average House Prices: England: London在2020-05达479,018.000 GBP，相较于2020-04的484,597.000 GBP有所下降。Average House Prices: England: London数据按月度更新，2005-01至2020-05期间平均值为308,962.000 GBP，共185份观测结果。该数据的历史最高值出现于2017-07，达488,527.000 GBP，而历史最低值则出现于2005-03，为231,263.000 GBP。CEIC提供的Average House Prices: England: London数据处于定期更新的状态，数据来源于HM Land Registry，数据归类于Global Database的英国 – Table UK.EB016: Average House Prices: HM Land Registry。

Just as in many other countries, the housing market in the UK grew substantially during the coronavirus pandemic, fueled by robust demand and low borrowing costs. Nevertheless, high inflation and the increase in mortgage rates has led to house price growth slowing down. According to the forecast, 2024 is expected to see house prices decrease by three percent. Between 2024 and 2028, the average house price growth is projected at 2.7 percent. A contraction after a period of continuous growth In June 2022, the UK's house price index exceeded 150 index points, meaning that since 2015 which was the base year for the index, house prices had increased by 50 percent. In just two years, between 2020 and 2022, the index surged by 30 index points. As the market stood in December 2023, the average price for a home stood at approximately 284,691 British pounds. Rents are expected to continue to grow According to another forecast, the prime residential market is also expected to see rental prices grow in the next years. Growth is forecast to be stronger in 2024 and slow down in the period between 2025 and 2028. The rental market in London is expected to follow a similar trend, with Central London slightly outperforming Greater London.

Affordability ratios calculated by dividing house prices by gross annual residence-based earnings. Based on the median and lower quartiles of both house prices and earnings in England and Wales.

Graph and download economic data for Housing Inventory: Median Listing Price in New London County, CT (MEDLISPRI9011) from Jul 2016 to Dec 2024 about New London County, CT; Norwich; CT; listing; median; price; and USA.

Existing dwellings in London were generally more expensive than newly built ones. In 2023, the average price of existing homes was 619,000 British pounds, while new dwellings, cost on average 391,000 British pounds.

Affordability ratios calculated by dividing house prices by gross annual workplace-based earnings. Based on the median and lower quartiles of both house prices and earnings in England and Wales.