Relentless rise: London house prices up GBP40,000 in two years since start of the pandemic

London property prices are now more expensive than ever since the pandemic. Prices have risen by GBP41,351 (or 8.4%) over the past year. The market in the South-East has been stronger since the pandemic. Prices rose GBP54,634 (or 16.5%) from GBP331,156 and GBP385,790, while supply and demand remain constant, despite increasing pressure on household finances. While there has been some evidence that more homes are being put on the market, the main problem is that too many buyers are trying to buy too few properties. The effect on house prices makes it more difficult for first-time buyers to get on the ladder. However, home movers face greater challenges as they have to make bigger moves to obtain larger properties. Separate data published today shows how buyers pushed themselves to get onto the housing ladder during the stamp duties holiday ordered by Rishi, who was trying to boost the property market during the Covid lockdowns. Although many took advantage of the stamp duty holiday to save money, they could end up with long-term mortgages that will be much more expensive in the long-term. “Estate agents claim they have seen a strong demand from buyers since the beginning of the year, despite rising mortgage rates. Guy Gittins is the chief executive of Chestertons. He said that the market for London’s property market saw record numbers of buyers throughout January. This is a strong indicator that the market will continue to see high activity levels in the second half of the year. “Although larger properties and homes with outside space are still in demand, the market is seeing a steady rise in apartments in central London boroughs. This is especially true for professionals returning to work and looking for a home close to them. “READ MOREThe best places to buy a home within London boroughs — you can save millions of dollars by targeting your search. Comment: Millennials are buying fewer houses — we wouldn’t care if there were better alternatives. London house prices continue to rise with an increase in sales and enquiries. Antony Roberts director at Richmond estate agency Antony Lyle said that London’s house market continues to do well with a lot of viewings, multiple offers, and sealed bid situations. If the price is too high or too ambitious, flats can get stuck. “This strong demand is likely to continue over the next months, but more stock is needed across all price ranges in order for that demand to remain committed. Sales volumes may be affected by rising living costs, increased interest rates, and conflict overseas.