London house prices: shortage of homes on the market pushes prices up by £10k in a month

House prices across London have reached an all-time high as the number of homes listed for sale falls by 16 per cent in the last year.
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Home hunters in London have far less choice when searching for a property than even a year ago, as the capital's existing home owners are increasingly priced out of taking the next step on the ladder.

Average asking prices have hit a record high of £630,050, jumping by 1.6 per cent - or £10,047 - in a month, according to Rightmove's latest House Price Index. In the east London borough of Tower Hamlets, along with Merton in the south, sharp growth has pushed average asking prices up by more than £50,000 in a month.

Despite strong demand from buyers, the latest price hikes reflect a drop in the number of homes being listed for sale, with 16.2 per cent fewer properties hitting the market this month compared to October last year. 


The report also reveals that only four out of 32 boroughs - Richmond, Hillingdon, Hackney and Newham - have more supply of property coming to market so far this year.

Miles Shipside, Rightmove director and housing market analyst, comments that this worrying statistic "highlights London property owners' financial resilience and determination to be able to choose when to sell, being acutely sensitive to time their moves and to make the most of their very valuable property asset."

With more potential buyers and fewer properties to choose from, homes that are put on the market at the right price continue to sell quickly.

"Buyers are very clued up on what represents value and can easily spot an asking price that is out of line," says estate agent Jo-Anne Neighbour of Savills.

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