Year on year London House Sales prices are up 5.8% according to the latest Land Registry sales data. The Nationwide Building Society property index, however, shows a different result to this with London prices declining for the first time in 8 years by 0.6%
What's the difference? Sales price vs. Index
The sales prices are based on what actually sold in a specific period. Whatever sells counts.
The NBS index uses a representative house price change over time. More of a like for like comparison.
Some areas have seen massive spikes in average sales prices compared to 12 months ago, Kensington & Chelsea has seen a price surge of 23.6% ending its apparent slump over the past 2 years. Other areas that have fared better over the past two years have now started to decline, namely the City of London which is down 6% from last year.
With a generally positive trend across the board and massive inward investment seen in the past 6 months in both residential & commercial investment, it is clear that investors and home buyers appetites are yet to be satisfied.
First-time buyers and those getting onto the property ladder are still finding prices steep in most parts of London and there is a clear demand for more properties in price brackets under £500k. Several of these buyers are continuing to turn towards commuter towns that offer high value and reasonable commutes.
Central markets will climb slightly over the next 6 months in the resale markets, and development values will stabilize as more developments come to market and compete for premiums from buyers.
Interested in learning more about the index methodology, download a detailed breakdown here: Nationwide House Price Index Methodology