London Property Market: Average House Price Now Half a Million

Despite the reports on Britain’s house prices becoming stuck at the same prices since 2004, the London housing market is still showing signs of inflation. According to the latest article on The Guardian website, London house prices are growing by 20% each year.

This growth seen in the London property market is five times that of the increase seen in other areas of the UK, such as the North East, and the same article on the Guardian website explains that the typical mortgage in London now demands a £100,000 salary.

Greenwich Millenium Village, South-East London
Greenwich Millenium Village, South-East London – photo credit: Wikimedia Commons

London shows the biggest level of growth across the UK and with soaring property prices, getting on the ladder for first-time buyers is more difficult than ever.

Figures from the NHF

The National Housing Federation, which markets itself as a the ‘voice of affordable housing’, shares regular insights into the London housing market, and one of its most recent news articles shares the terrifying report of working Londoners forced onto housing benefit due to the rising house prices. Despite higher wages in the capital, housing affordability still remains to be a key issue and the average home in the city is now up to half a million pounds. There are also predictions that this will reach £1 million in the next decade or so.

As it stands, the current average house price is 14 times the average London wage, making it impossible for working professionals to get – or stay – on the property ladder.

Cheaper Council Tax Areas in London

One of the solutions pushed by estate agents in the London area, such as Featherstone Leigh, is to opt for the cheaper council tax areas in the city to cut back on costs for those able to get a London mortgage.

Areas such as Battersea (located across the river from the affluent Chelsea area) are now up and coming locations for the London buyer and can be much more affordable alternatives for buyers looking for a good deal.

Battersea, London
Battersea, London – photo credit: Roger Marks

Housing in the Battersea Area

For anyone looking for the elegance of Chelsea at a much more affordable price, now is prime time to shop around in Battersea; an area said to be the younger and much more affordable alternative.

Since the commissioning of Battersea Power Station’s renovation into flats, where the rich and famous are said to have bought already – including artist Sting and his wife Trudie Styler – the area has seen vast improvement. It is said to have promise to become London’s new property paradise by many experts.

Whilst Battersea still boasts one of the lowest council tax zones in the whole of London, and the housing bubble shows no sign of backing down, buyers will find this area of be full of opportunity.

If you would like more advice on buying property in the bubble, head over to the London Evening Standard online for the latest tips.