Call for your free quote 0800 955 0058

Houses prices rebound despite property market slowdown

Despite the property market slowing down this year house prices have unexpectedly rebounded including expensive London.



Data from the Office of National Statistics (ONS) shows house prices in England rise by 5.7% for the year to April up from 4.4% a month ago.

Average property values in the UK are higher by £4,246 rising from £215,848 in March to £220,094 for April and London is up by £11,037 from £471,742 in March to £482,779 in April.

This will not be welcomed by first time buyers as they would require a larger deposit or higher earnings to buy or home movers as they need a larger mortgage where the gap with current property and the next increases.

For home movers wanting to trade up when prices are rising, they may find their next property is more expensive which means they need a larger deposit or mortgage.

Strong recovery in property values

Of the thirteen regions in the country, last month eleven experienced a decrease whereas in April twelve regions have increased month-on-month and only Northern Ireland decreasing by -0.8%.

Average prices and annual change for the UK to April 2017 from the ONS are shown below.
Area Annual changes Property values
London 4.7% £482,779
South East 6.8% £315,334
East of England 8.1% £280,690
South West 6.8% £243,215
England 5.7% £236,519
West Midlands 6.0% £180,690
East Midlands 6.5% £176,213
Yorks and the Humber 4.9% £155,357
North West 4.1% £152,765
Wales 4.2% £147,921
Scoltand 6.8% £145,735
Northern Ireland 4.3% £124,007
North East 0.6% £123,234
Over a month, Yorks and the Humber has rebound the most from -0.6% to 3.9% and Scotland has the largest increase of 5.4% in April compared to a fall of -1.0% the previous month.

Year-on-year the largest house price growth was in the East of England up 8.1% for the year, the slowest is the North East with 0.6% and London is 4.7% higher to April compared to 1.5% in March.

For buy-to-let landlords with existing properties the rise in house prices creates more equity which they can benefit from if they sell in the future.

For older homeowners the continued rise in house prices has helped them to accumulated wealth in their properties and the equity release mortgage buyer can access this to maintain their lifestyle, holidays or home improvement.

London house prices slowing

The month of April is the first time in eleven months that the rate of price growth in London has increased.

Average prices and annual change in London for April 2017 from the ONS for the top ten boroughs are shown below.
London borough House prices
Annual changes
Haringey £558,003 9.0%
Enfield £407,921 7.9%
Newham £364,137 7.9%
City of Westminster £1,040,376 7.7%
Havering £358,251 7.4%
Barnet £555,664 7.4%
Bexley £334,191 7.2%
Hounslow £409,591 6.9%
Barking and Dagenham £285,085 6.9%
Hammersmith and Fulham £819,677 5.3%
The year-on-year house price growth for April is lower than the previous month for the top ten boroughs and may reflect anomalies from April 2016 as figures were depressed just after changes to stamp duty land tax.

Only three boroughs experienced falling property values over the year with Camden lower by -2.9%, Wandsworth down -2.2%, City of London lower by -0.7% and Islington down -0.5%.

Compared to last year, City of Westminster has seen the average price of homes rise £74,007, Haringey higher by £46,081, Hammersmith and Fulham rising £41,397 and Barnet up by £38,256.

One advantage of rising house prices for homeowners is remortgage buyers can now release capital for home improvements.

What are your next steps?

Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to access wealth for home or garden improvements and holidays.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, property value tracker chart and mortgage costs calculator.

At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%

The latest mortgage news


12 Sep 2022

Fifth of homeowners use mortgage advance to go green

As energy bills are rising 22% of homeowners are using mortgage advances to improve the efficiency of their homes to reduce costs.

26 Aug 2022

Equity released hits record levels as more people access cash from homes

Homeowners accessing cash from their properties increased 26% over the year with over £3 billion of equity release in the first six months.

29 Jul 2022

Home movers drop over a third in 2022 compared to last year

The stamp duty holiday last year produced bumper demand from home movers now down a third but still above pre pandemic levels.

18 Jul 2022

Property market is cooling after sixth house price record

Asking house prices rise for the sixth record in a row to £369,968 as demand to buy continues although at a slowing rate.

Call for your free quote 0800 955 0058

  • IMPORTANT

    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

  • WARNING

    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.

    CONTACT

    Address:
    9th Floor, 30 Crown Place
    London, EC2A 4EB

    Phone:
    0800 955 0058

    Email:
    info@londoncitymortgages.co.uk

    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2024 © London City Mortgages.