London house prices have finally started to rise again after stalling last year.

The average price of a property in London has gone up by 0.2% since this time last year. That might not sound like much, but it means the average London home will now set you back £536,300!

This increase, revealed in Zoopla’s latest house price index, marks the first time London house prices have gone up since April 2023.

London Joins the Property Upswing, But Other Areas See Prices Fall

London isn’t the only place where house prices are on the up. Across the UK, average prices have increased by 1.4% since last year. Northern Ireland has seen the biggest jump, with prices there shooting up by 5.1%.

However, it’s not all good news for sellers. Some parts of the country have actually seen prices drop. In the East of England, prices are down 0.9%, and in the South East, they’re down by 0.7%.

Experts Predict Continued Growth, But Urge Sellers to Be Realistic

Overall, the property market seems to be recovering after a bit of a wobble last year. Zoopla’s figures show that buyer demand has gone up by 20% in the first seven months of 2024, and there are more homes available to buy than there have been for six years.

Richard Donnell, at Zoopla, thinks this increased demand and supply will keep prices rising gently but won’t lead to a boom.

He warns sellers not to get greedy and price their properties too high. He says if you have to drop your asking price by more than 5%, your home could take twice as long to sell, or even worse, not sell at all.

Other property experts agree. Tom Bill from Knight Frank predicts that UK house prices will go up by 3% this year, while Nathan Emerson from Propertymark says the government should take advantage of the current market confidence to build more new homes.

So, what does this all mean for you?

• If you’re thinking of selling your home in London, now could be a good time. Prices are on the up, and there are more buyers out there. But don’t get too excited and ask for an unrealistic price.
• If you’re hoping to buy a home in London, be prepared to pay more than you would have a year ago. And be ready to move fast, as competition from other buyers is likely to be fierce.