Asking prices for houses coming to market in London have snuck up 2.8 per cent in February 2024, according to Rightmove’s latest House Price Index.
The average asking price for a London house is now £682,989, up £18,439 from £664,550 in January 2024.
There were higher asking prices since last month from sellers in 21 of the 32 boroughs covered in Rightmove’s index.
Westminster saw the biggest surge, with asking prices up 4.6 per cent in this expensive central London borough, where the average asking price for a house is currently £1,536,349.
Asking prices are up more than two per cent in Tower Hamlets (3.1 per cent), Camden (2.5 per cent), Lambeth (2.3 per cent), Hammersmith and Fulham (2.2 per cent) and Sutton (2.0 per cent).
This sudden reversal of more than a year of falling house prices is due to lower mortgage rates, said industry watchers, as people have more budget to move house or attempt to get on to the property ladder.
“The surge in activity can be attributed to the decreasing and now stabilising mortgage rates, which have prompted many individuals who postponed their moves last year amid uncertainty to now re-emerge,” said Jimmy Waight, head of sales at John D Wood & Co in London.
“The current momentum is further underscored by an increase in registered buyers year-to-date compared to the same period last year. This positive trend suggests a renewed confidence in the market, and as we move into spring, we anticipate a continued upward trajectory in both buyer interest and property transactions.”
But Rightmove’s director of property science Tim Bannister cautioned sellers to not get too excited and put their asking prices too high.
“Momentum to move in 2024 is continuing to build, but prospective sellers mustn’t get carried away,” he said.
“Buyers now have more choice of property for sale and many are still very price-sensitive, with mortgage rates remaining elevated.
“Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters or unexpected events dampen the momentum.”
It currently takes 84 days on average to sell a house in London.
Asking prices are still falling in some boroughs, including Harrow (-1.9 per cent), Ealing (-1.4 per cent), Islington (-1.4 per cent) and Brent (-1.3 per cent).
Asking prices for homes across the UK were up a more modest 0.9 per cent in February.
