London house prices ‘to average £1 million by 2020’
1 October 2015, Blog
If current property market trends continue, the average London home could reach £1 million by 2020. That is the prediction from property agent Rightmove, who’s latest House Price Index indicates that house prices in the capital hit an all-time high in September; jumping 2.2% or £13,177 to reach £620,003. The rebound in house prices since the summer lull has pushed annual price growth to 9.5%, with outer London currently outperforming inner London; with annual growth of 9.7% versus central London’s 9.1%.
Rightmove said prices were shooting up as a “supply/demand imbalance continues along with London’s international allure.” Miles Shipside, Rightmove director and housing market analyst said that “demand from those who can afford to buy remains high, and suitable supply remains tight, with the number of properties coming to market down 6 percent on the same period in 2014.” Shipside added that it is leading to “extremes in market forces” in some parts of the market.
The figures came days after Prime Minister David Cameron faced questioning from new Labour Leader Jeremy Corbyn on the housing crisis. During a recent meeting of Bank of England officials, the buy-to-let property market was identified as a threat to wider financial stability in the UK.