Average London property hits 250k mark
The milestone was surpassed when house prices in the capital increased by 1 per cent in May to £250,137, up from £247,730 in April.
The estate agents believed the price increase showed the London market remained buoyant despite jitters in the wider economy, with prices up 10 per cent from this time last year.
Paul Smith, chief executive of haart estate agents commented: “The market has been very buoyant this first half of the year, as buyers are continuing to return to the market. Average house prices as a result are inching their way up and have now exceeded the £250,000 mark. Buyers are remaining price sensitive, however, and the overpriced properties are not shifting.”
Despite average prices passing the quarter of a million mark, haart also revealed first-time buyer levels had remained steady, with those taking their first step onto the property ladder accounting for 27 per cent of the market.
However, the estate agent believed this was only due to the relatively low interest rates for mortgages.
Smith added: “First-time buyers remain confident that the housing market is healthy, and with interest rates remaining relatively low they are still able to afford repayments on their mortgages, despite the rising prices.”
However, Jock Cassidy, managing director of financial advisers Ashley Law, believed that necessity was a bigger factor in maintaining first-time buyers within the London property market.
He said: “I don’t think that the average price will have too much impact on first-time buyers. They recognise that they need to buy a property as it is a long-term necessity so they need to do something about it.
“As long as properties are reasonably affordable, with the market as it is now in the South East, people will continue to buy.”