London properties tip £500k mark

The chief executive of Haart, which has a dedicated financial and legal services division, has revealed new data suggesting the average London property price reached £501,056 in May.

This was a rise of 26.1 per cent year-on-year, and an increase of 4.3 per cent on the previous month, giving homeowners in the capital an extra £103,761 on average each.

Mr Smith said: “London homeowners will be forgiven for being astonished that they have ‘earned’ an average £100,000 in equity over the past 12 months.

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“The way to put the brakes on price growth is to increase supply, but in London we have only seen new property instructions rise 0.2 per cent a year and new properties for sale across the UK as a whole are down 1.7 per cent.”

He added that even mortgage market review rules cracking down on affordability had not dampened demand.

Adviser view

Jonathan Harris, director of London-based Anderson Harris, said: “An increasing number of people are worried about the double whammy of overpriced property and the impact of an interest-rate rise, creating a softening in lending volumes.”