The rise of the suburbs: average house prices hit ?500k in two thirds of London areas

According to Savills’ new research, house prices in London have now reached at least?500,000 for two-thirds. This number had dropped by 12 percent to just 36% by 2021, making London more affordable for those on smaller budgets. There was a noticeable increase in suburban and semi-urban areas exceeding the?500k threshold in the city last year. Eight wards broke through in Waltham Forest, seven were in Croydon, and five more in Bromley and Haringey. This was due to a desire for more space, which was fueled by the government’s stamp tax holiday. For some Londoners, moving to more central areas to get more money meant that they had to move out of the city to find more space for work and school. Stock couldn’t keep up with demand so prices rose quickly in these suburban areas. “Only 25% of the 232 London areas have yet to reach the?500k threshold. This means that spending more than half a million pounds on properties will soon be the norm in the capital. Cook said that the “rebalancing back in favor of London” is now possible with the full force of the back-to-work movement. READ MOREBuying a London home: The number of homes available in each London borough. Mortgages: Bank of England raises interest rate to 1%. Here’s what it means. Crossrail: Best-value locations close to Elizabeth Line stations. However, the pace of expansion of the?500k neighborhood will likely slow down due to four consecutive interest rate increases and the cost of living crisis. The amount of space you can afford in London for half a million pounds has decreased by two percent over the past five years, which is more disappointing news for first-time buyers. It now stands at 86sqft, as opposed to 2,017 sqft in North East. However,?500,000 gets you 21 percent more space in Kensington or Chelsea than it did five year ago, up to 495 square feet. This is due to the recent negative growth in prime central London, which was largely fueled by uncertainty over Brexit.