Mansion tax mania: Average property price in Kensington and Chelsea rises by £486,000 in one month
The average asking price for a home in Kensington and Chelsea rose 28.4 per cent (almost £500,000) between May and June, according to data from Rightmove.
The figure hints at a glut of high-end properties entering the market after the election, now sellers can forget their fears over the mansion tax.
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Huge rises weren't confined to that borough, though: the average cost of a house in London rose £643 a week over the last 12 months – just below the median salary (£660) cited by the ONS for a full-time worker in the capital. This takes the average price of a house in the capital north of £600,000, with the figure at £286,133 for the UK as a whole.
The study showed house prices in London rose 5.7 per cent in the 12 months to June, hitting a new record of £613,922. That's a rise of over £33,000 in 12 months – making it clear why so many struggle to buy in the city.
Rightmove said the jump was largely driven by a return to the market of high-end sellers, who have come out of hiding after fears of a Labour-imposed mansion tax evaporated. This effect was exacerbated by 8.5 per cent fewer properties being listed on Rightmove’s website during June when compared to a year earlier.
The price rises were almost ubiquitous across London, with all but two boroughs reporting growth during the last 12 months. Newham had the fastest growth, of 18.4 per cent.
Miles Shipside, Rightmove director and housing market analyst said:
Some buyers had been holding back in the weeks before the election, leading to some sellers suffering an unseasonal price standstill in the late spring. In particular, sentiment and prices got hit in the mooted mansion tax price brackets.