House prices are on the rise all over the country and it’s no surprise the capital is seeing the biggest change in price. The cost of living in the city, prices for goods and services for example, are around 10 per cent, give or take, higher than the rest of the country. Even students studying in the capital get more student loan as the price for rent is just so much higher.
Kensington and Chelsea
Take famous London borough Kensington and Chelsea, home to some of the most famous shopping high streets in London where the property prices reflect the shopping. The average value of a property in Kensington and Chelsea at the moment is at around £1,449,883 which is an 8.4 per cent rise from last year. In comparison to the UK average which stands at only £226,887. This means obtaining a property in Kensington and Chelsea costs on average 639 per cent more than anywhere else. It seems as soon as an area becomes popular the house prices just soar. It is stunting and off putting for first time buyers who simply cannot afford the starting fees that would secure a mortgage of this size.
Fulham and Hammersmith
Fulham and Hammersmith in South West London is quickly becoming a hotspot for young professionals living in the capital. This demographic are the most likely to be first time home owners and because the price of rent in the area is fast approaching the price you would pay for a mortgage each month, a lot of young couples especially, are trying to set up a home stead in this corner of London. The average property price in Fulham is £626,232 (+3.1 per cent on last quarter), standing at a whopping 240 per cent more than the national average. The biggest hurdle for a first time buyer though is the deposit for a mortgage. There are tools out there to help first time buyers, confused about property prices and mortgage rates, if you are in the same situation check out the online tools such as the mortgage payments calculator. This will make sure you are paying a fair rate on your mortgage.
Data from the BBC