London House Prices Remain Unchanged Over Year

Homebuyers in London have the costliest journey into property ownership, with properties in the capital notoriously being considerably more expensive than elsewhere in the UK. Therefore, the recent news that house prices in London have remained the same over the last 12 months will come as a relief. 

Halifax’s latest House Price Index reported no change in value in London properties between January 2022 and January 2023, while nationally there was a growth in price of 1.9 per cent. 

Kim Kinnaird from Halifax Mortgages said: “The start of 2023 has brought some stability to UK house prices.”

She went on to say: “We expected that the squeeze on household incomes from the rising cost of living and higher interest rates would lead to a slower housing market, particularly compared to the rapid growth of recent years.”

House prices had escalated at an unprecedented pace prior to this plateau, and values are currently around £12,500 below their peak in August 2022.

While London house price growth has not been as rapid as the rest of the UK, it has recently experienced dips in value. The average cost of a property in the capital was £541,472 in December 2022, falling to £530,396 in January this year. 

Falling prices will make it easier for homebuyers to get on the property ladder, particularly as high mortgage rates and strict restrictions made it even more challenging towards the end of last year. 

Following the mini-Budget in September, mortgage rates soared and lenders tightened their borrowing criteria. However, this has relaxed slightly, with HSBC recently releasing a five-year fixed-rate at 3.99 per cent. 

If this news has encouraged you to start looking for houses to buy near me, give us a call today for help to find your dream home.