The Evening Standard has a story on the incredible continuing rise in house prices in London, with the average home in the capital rising in value by an amazing £48,000 in the last year alone. That, according to figures from the Halifax bank, means the average house in London is now worth £313,000 ($642,000) which seems a ridiculous amount for what that will buy you, and also leaves the value of property way above what most salaries could afford if just entering the market now.
I live in North London and flicking through the local paper the property section is full of modest three bedroom terraced houses on sale for over £400,000 or places of that size that have been converted into flats, each going for £230-250,000. Anyone moving to London would probably be staggered how little half a million pounds would get you.
The Standard story also says that boroughs such as Haringey and Brent are seeing some of the biggest price rises as better neighbourhoods get beyond reach. Somewhere like Haringey has older, larger properties but isn’t the nicest place to live right now, I guess that might change if money starts pouring in.
The cost of buying property has also had a knock on effect on the rental market. In my area one bedroom flats go for around £650-£700 per month, 3 bedroom houses for around £1200 per month. If you’re planning on maybe using London as a work stop on a round the world trip, be prepared for a high cost of living while you’re here although if you can save some money the current strength of the Pound (£1=$2.05!) will make it worth it when you move on.
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Yes Brent has seen a big increase. A relative of mine bought a 2 bedroom house a couple of years back and they have seen a significant growth, they are even tempted to sell!
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