London house prices: terrace homes rise by £100 a day

The plight of London’s “second steppers” is revealed today in new research which shows that the price of an average London terrace house has shot up by £100 a day over a year.
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Buying a terrace home in the capital now costs almost £600,000 – an all-time record price, and up almost £36,000 year on year.
In five boroughs — Westminster, Kensington and Chelsea, Hammersmith and Fulham, Camden and Islington — a terrace house now costs more than £1 million.
But it is Hackney where price increases have been the most dramatic. Terraces in the borough have gone up by almost a quarter, from £736,250 to £907,267. This means owners of an average terrace house have made a paper profit of £171,012 in a year – or almost £470 per day.
Newham has also seen strong rises, from an average of £261,888 to £315,337. This increase of just over 20 per cent means that buyers keen to buy a modest house must find an extra £53,449 to fund their purchase.


“The difficulties facing first-time buyers are well documented, but the struggle with home ownership doesn’t end with your first property purchase,” says Sophie Chick, associate director in Savills’ research department and author of today’s report.
“Those who bought their first property after the financial crisis often haven’t seen enough growth on their home to fund a step up the housing ladder in the same area. Over the past year, we’ve seen an average terrace house in London increase in value by just over £36,000.”
Buyers without £3.8 million to buy a grand house in Kensington and Chelsea, location of the most expensive London terraces, can still find a house with a budget of under £300,000 — just.

The best-value terraces are in Barking and Dagenham, with an average price of £243,379, up 15.8 per cent — or £33,212 — in the 12 months to May, the latest figures available for the study.
Terrace homes in Havering or Bromley cost an average of just over £270,000, up 13 and 16 per cent respectively.
London’s first terraces appeared in the 17th century and were bold affairs that included Grosvenor Square and the Nash terraces of Regent’s Park.
But the trend for linked rows of houses soon caught on with low-cost speculative builders, who adopted the style to create tens of thousands of streets full of more modest properties aimed at less wealthy buyers.

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