London property remains overvalued, says UBS, but the UK capital is near the bottom of the bubble-risk table this year.
Every region and market sector saw asking prices rise to a record high last month, reports Rightmove; it’s the first “full house” since 2007.
London’s average £1m home is only a third (36%) bigger than the overall average-sized home in the capital, says Savills. Buyers would get an average of 70% more space if they looked beyond the M25.
A sharp acceleration in property price inflation means that the combined value of British homes has climbed by £550 billion (a third of the total five-year increase) in just the last 12 months, according to Zoopla’s automated valuations.
Property price inflation has driven the average SDLT bill in England up from £601 in 1997 to £3,548 in 2021.
The annual rate of UK property price inflation was running at +6.1% in August, according to Zoopla; that’s more than double the rate recorded in August last year.
“We’re more likely to see a continuation of modest price growth, such as we’ve witnessed during the last five years, rather than a boom followed by a bust,” says Hamptons, as it forecasts the start of a new property market cycle in 2024/5.
Property is now the world’s most significant store of wealth, says Savills; more valuable than all global equities and debt securities combined, and worth almost four times the entire global GDP.
It currently costs an average of £282 to buy a single square foot of property in the UK, according to Zoopla – rising to £1,491 in Kensington & Chelsea.
New research has looked into how the average property values in OECD nations changed in comparison to annual wages and wider inflation rates over the last decade.
“This unprecedented rate of growth is driven by the post-lockdown reopening of cities, and a return among tenants to the city rental landscape,” says Zoopla.