London house prices up as demand increases – Zoopla

Average London house prices have risen for the first time since April 2023, according to the latest figures from property portal Zoopla. The rise puts the average price of a property in the capital at £536,300, up 0.2 per cent year on year in the first seven months of 2024.

Across the UK, house prices rose by 1.4 per cent with London among eight regions to see an increase, according to the portal’s latest house price index.

Zoopla puts the rise down to increased buyer demand – up by 20 per cent during the first seven months of the year. Demand slowed last year following big rises in interest rates.

According to the figures, sales agreed are also up by 23 per cent. Richard Donnell, executive director at Zoopla, explained: “Momentum in the sales market continues to build as mortgage rates drift lower and more and more sellers gain the confidence to list their home.”

However, an increase in the supply of homes should prevent prices from spiraling. Estate agents who list homes with Zoopla currently have an average of 33 properties available for sale – a seven-year high. Said Donnell, “Buyers have much greater choice which will support sales numbers, but this will keep prices rises in check.”

Responding to the figures, Nathan Emerson, chief executive of property industry body Propertymark, said he saw a “real positivity within the housing market now that the economy seems to have stabilised.”

He called on the government to build on this market confidence by setting out a timeframe for its Planning and Infrastructure Bill to help meet its target of building two million new homes this parliament.

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