In the dynamic landscape of London's property market, 2023 has seen a unique trend unfold. While average overall UK house prices experienced a 3.9% dip between Q3 2022 and the same period in 2023, only four London boroughs managed to defy the downward trend.
Written by Megan Wright | 20th November 2023
London Property Market Update: 2023
This year, Ealing emerged as the frontrunner in the capital, showcasing a remarkable 7.5% growth, reaching an average house price of £531,137.
Ealing, often referred to as the "Queen of the Suburbs," secured its place as the borough with the strongest house price growth in London. The £37,027 average increase in added value over the past year can be attributed to significant investments, particularly in its Zone 3 town centre. The influx of billions of pounds, spurred by the arrival of Crossrail, has transformed Ealing into a sought-after location with improved connectivity—now only 12 minutes from Paddington and 25 minutes from Tottenham Court Road.
The Local Scene
Ealing's success contrasts with the broader London market, where only three other boroughs experienced growth. Haringey saw a 1.7% increase (to £530,584), and Southwark exhibited a modest 0.3% growth (to £481,589). Notably, Westminster and the City of London followed closely, with a 7.4% increase, reaching an average house price of £767,350.
Zooming out to a national scale, a comprehensive report revealed that only 70 out of over 300 local authorities across the UK observed an increase in house prices. Intriguingly, the steepest rises were witnessed in more affordable areas outside the capital, suggesting a shift in market dynamics.
While London experienced its localised fluctuations, the nationwide property market saw Powys in Wales leading with a substantial 17.4% increase in property values. This surge brought the average house price in Powys to just under £254,000. East Lindsay in the East Midlands followed suit with a 13.3% rise, reaching £220,421, and Moray in Scotland experienced a 10.7% increase, bringing prices to £179,606.
Factors at Play
Kim Kinnaird, director of Halifax Mortgages, emphasised in recent interviews that various factors influence house prices, from property availability and new housing developments to the quality of schools and job opportunities. The heterogeneous nature of the UK housing market is evident, with localised pockets of growth despite the national affordability squeeze.
In conclusion, the London property market in 2023 paints a nuanced picture. While the overall trend suggests a decline, specific boroughs like Ealing stand out as resilient hubs of growth. Meanwhile, the broader UK landscape showcases diverse trajectories, with remote and rural areas, like Powys in Wales, continuing to captivate prospective homeowners, defying the broader market trends.
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