Savills : London’s disappearing £300k average house price tag
While the average English house price now stands at £277,000, neighbourhoods where the average price is below £300,000 are a dying breed in London thanks to rapid price growth over the past five years, according to analysis by Savills, using latest Land Registry data.
Indeed, there are now more electoral wards in the UK capital where the average house price exceeds £1million than there are wards where the average is below the £300,000 mark.
The average across London rose to £545,000 by the end of 2016, leaving only 6.3 per cent of the city’s 626 electoral wards* with an average house price below £300,000. Just five years ago, almost half of the wards (48%) fitted into the same bracket.
London house prices rose by an average of 62 per cent in the past five years, leaving affordability ever more stretched. As a result, nearly half of all wards (48%) have an average price exceeding £500,000, a figure that stood at 18 per cent just five years ago.
Further up the price range, there are now 52 wards (8.3%) in London where the average price has passed the £1million mark. To put this into context, only 12 other wards across the whole of the UK have the £1m+ price tag.
Unsurprisingly, the most affordable wards are concentrated in outer London boroughs. Out of 33 boroughs (including the City of London) only 13 still have wards with average prices below £300,000, compared with 27 five years ago. Barking and Dagenham, with 15, is the only borough to have more than five wards in this price bracket.
The most expensive neighbourhood in 2016 was Knightsbridge and Belgravia in Westminster, with an average of £4.3million. The most affordable was Thames ward in Barking and Dagenham.