Today the Office for National Statistics released their latest house price index detailing that:-

• UK house prices increased by 5.7% in the year to May 2015, up from 5.5% in the year to April 2015

• In May 2015, London continued to be the English region with the highest average house price at £503,000

• Excluding London and the South East, UK house prices increased by 5.2% in the 12 months to May 2015

With the average London house price hitting half a million, research by leading online estate agent eMoov.co.uk has found that demand for London property has increased for the first time this year, having declined steadily since June 2014. Demand across London’s boroughs has climbed by 7% since March, although it is still down -15% since this time last year.

Founder and CEO of eMoov.co.uk, Russell Quirk, commented:

“It doesn’t surprise me that despite the market cooling in some of the capitals more prestigious boroughs, house prices in London have continued to rise. It’s long been accepted that London is one of the most expensive cities to live in the world, let alone the UK, but now that the average house price has tipped above the half a million mark, it really highlights how out of control the property market has become here.

The main factor in price growth is always demand and our latest Property Hotspots Index found that of all the London boroughs, demand has increased across the board by 7% on average since March, having steadily declined since this time last year.

However despite this turn around, demand is still down -15% in London from this point last year.

This said the fact that house prices outside of London and the South East have continued to increase by 5.2%, shows that the London exodus for more affordable property is continuing. Hardly surprising given the new London average and the resulting ripple effect, as buyers search for a realistic way to get on the UK property ladder.”

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