London Property Prices Raise Affordability Concerns

London Property Prices Raise Affordability Concerns

A London property news update: it has been highlighted that greater than 25% of London boroughs don’t offer a home-for-sale at a value of less than £191,812, the average across the UK; a concerning affordability issue for those wishing to relocate to London. The news comes with the release of figures from House Simple, the online estate agent.

The average price for a property in London presents sits at circa £530,409, a startling value. Additionally, as highlighted by House Simple, only nine in 32 of the boroughs actually play host to a property with an asking price under the average price from the Land Registry. In fact, it was reported that there was only one borough with the provision of a property for less than £100,000 Bexley. In contrast to this, however, Tower Hamlets reports no available properties marketed for below £250,000.

As can be expected, the cheapest form of property available in close to 50% of the boroughs is a studio flat which, while efficient, also sits at a comparatively small offering of space in comparison to that of the traditional one-bedroom flat (100-110 sq ft approximately, as opposed to an average of 495 sq ft).

While the results do point out there are at least some properties available on the market at less than the average UK property price, House Simple’s CEO, Alex Gosling highlighted that the availability of such properties is very low, and the space on offer for the amount paid is also rather small. “It’s a studio or nothing in many boroughs,” he added.

This piece of London property news, of course, also highlights potential reasoning as to why there is an increased trend of people relocating out of the London area, with property price comparisons highlighting the potential for a fully-fledged house in some areas of the UK, for a similar price to that of a studio flat in London. Yet, for people to still be doing this thus far, there must still be some considerable appeal in living in the capital.

London Property Prices Raise Affordability Concerns
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London Property Prices Raise Affordability Concerns
BDC July 2022 issue - 294

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