The London housing market has shown a robust increase, with some areas witnessing a 5.6 percent leap in asking prices. This news might leave many Londoners wondering how their borough stacks up in the latest housing price evolution.

According to the newest figures from Rightmove’s house price index, the average asking price for a London home has risen to a staggering £686,844, marking a 0.6 percent increase from February. It’s clear that the capital’s property market is not just resilient but thriving, with certain boroughs enjoying an annual asking price surge of up to 5.6 percent.

What’s Driving the Demand?

London’s unmatched buyer demand is attributed to several key factors. The call for workers to return to the office, alongside a deceleration in inflation and a stabilising property market, have all played significant roles in this uptick. Marc von Grundherr, a director at Benham and Reeves, highlights that despite mortgage affordability concerns, the appetite among London buyers remains voracious. “Activity is buzzing at all price levels, particularly within the super prime market,” von Grundherr notes, underscoring the high confidence among top-tier buyers unaffected by higher borrowing costs.

Borough Breakdown

In the glamorous locales of Richmond-upon-Thames and Hammersmith and Fulham, asking prices have skyrocketed by 5.6 percent, with homes now averaging at £949,555 and £1,010,417, respectively. Westminster, the heart of prime London, isn’t far behind with a 4.7 percent increase and an average price tag of £1,526,159. However, Kensington and Chelsea have seen a slight dip of 0.3 percent, yet it remains London’s priciest borough with homes averaging at £1,667,168.

The Budget’s Impact and Buyer Behavior

The Spring Budget 2024’s failure to introduce major incentives for first-time buyers has cooled some of the enthusiasm, leading some prospective buyers to pause their searches. Yet, the lack of substantial budgetary concessions hasn’t deterred the majority, as noted by Matt Thompson of Chestertons, who predicts a bustling market continuation, especially in the capital where demand still outpaces supply.

Affordability in Focus

At the more affordable end of the spectrum, Barking and Dagenham present an average home price of £360,537, though prices have dropped by 2.6 percent annually. Similarly, Croydon has seen a slight decrease of 0.6 percent, with current average prices standing at £484,795. Camden, on the other hand, showcases the most significant volatility with a 3.2 percent annual decrease but a recent 1.5 percent monthly uptick, setting the average house price at £1,085,835.

The Market’s Mood

The average time to secure a buyer in London now sits at 73 days. According to Jeremy Leaf, a north London estate agent, the increase in listings means buyers can afford to be picky, prioritising properties priced realistically. “Those sellers who act quickly on early enquiries are more likely to succeed in this increasingly demanding market,” Leaf advises.

UK Wide Perspective

Comparatively, the UK housing market has seen a 1.5 percent increase in March, surpassing the 22-year average monthly increase of one percent. Sales agreed have risen by 13 percent from last year, with an 8 percent uptick in buyer demand, signaling a healthy and dynamic market across the board.