Westminster house prices show on London decline over New Year

The Elizabeth Tower in Westminster

The Elizabeth Tower in Westminster - Credit: PA Archive/Press Association Images

The City of Westminster was the only London borough to experience declining house prices in January, despite an annual rise of 13.1%, according to new reports.

The latest Land Registry House Price Index reveals that the City of Westminster underwent a 0.1% decline in houseprices in the New Year, shrinking to an average house price of £862,053.

Annually however, its growth fell in line with surrounding boroughs, closely mirroring Haringey, which grew by 13.3%, and topping Camden, which rose by 8.1%.

The highest annual rise in a London borough was Hackney with 20.4% growth and house prices averaging £526,361.

Across Britain, average house prices have increased across the board since January 2013, but London stands out with a 10.9% annual change. The next highest is the South East with 6.4.

David Newnes, director of LSL Property Services, owners of Your Move and Reeds Rains, said: “The property market is reaping the fruits of the wider economic recovery. Confidence is clearly on the rise, creating a buoyant atmosphere in the housing market.

“But there’s a flip-side. With far more people entering the market, we simply need more homes – beyond the level of current new house building and movers coming to the market.

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“Most of the ingredients are there for a good housing market – we need action from the Government to help stimulate more house building more quickly to keep pace with the growing need and demand for more housing.”

Peter Rollings, CEO of Marsh & Parsons Estate Agents added: “It’s great to see ripples of growth spreading throughout the country, with the North East experiencing the highest monthly price rise of 2.6% in January.

“But the London market is still surging ahead the rest of the UK, with a 10.9% annual increase in prices in January. Average property prices in the capital are nearly three times the nationwide average, and with the disconnect between supply and demand currently at a four-year high, prices are likely to continue this upwards momentum.”