There’s a roundup of the best, and worst-performing areas of London for house prices in the Standard today. And some tips on what to do if you have to move soon.

1. Recent Mortgage Rate Rises

The Bank of England’s recent increase in mortgage rates is impacting the housing market. Many properties have been listed with a ‘Reduced’ guide price.

2. No Need to Panic

These fluctuations are normal, and values are only significant at the time of selling. A long-term perspective can weather these changes, as property remains a sound investment.

3. Optimal Time for Growth

Owning a home in London for nine years appears to be the optimal time for growth, with the average homeowner seeing a 45% increase in value since 2014.

4. Borough Level Trends

• Inner London: Increased by 33% over the past nine years to £616,290.
• Outer London: Increased by 58% to £487,660. This growth is attributed to the relative affordability of these areas, pushing buyers away from the city center.
• Top Performers: Barking & Dagenham (up 84%), Havering (up 76%), and Waltham Forest (up 76%).
• Least Growth: City of Westminster (up 3%), Kensington and Chelsea (up 8%), and Hammersmith and Fulham (up 11%).

5. Factors Influencing Growth

Changes like high Loan-To-Value (LTV) lending deals post the financial crisis and the ‘Race for Space’ post-Covid have impacted the market positively.

6. Should You Sell Now?

• The ‘Three Ds’: Situations like death, divorce, and debt may force a sale.
• Consider the Bigger Picture: Although we may be entering a period of price falls, viewing this within a nine-year cycle context shows a steady upward curve. Those who held onto properties during this cycle have reaped benefits.

7. Advice for Homeowners and Investors

• Stay Calm: The property market is resilient, and these changes come after years of significant growth.
• Consider Long-Term: Adopting a long-term view is advisable as property continues to provide sound income and capital value gains.
• Look at Trends: Investors should consider the growth in outer London and more affordable boroughs.
• Timing: Recognize the ebbs and flows and align investment or selling strategies with the market’s natural nine-year cycle.

In simple terms, while recent changes in mortgage rates may cause concern, the overall trend for London’s property market has been positive. Consideration of long-term ownership, an understanding of the differences between inner and outer London, and timing strategies in alignment with the natural cycles of the market can support both homeowners and investors in making wise decisions.