Thanks to the interest shown by multi millionaires from the likes of Russia, India and China, the average asking price for a home in London Borough now sits past the £2 million barrier.
This means that house prices in Kensington and Chelsea has jumped to £2,000. The news came as a report after Rightmove revealed that the UK’s property market is experiencing it’s biggest “spring bounce” in six years.
According to a survey conducted, the continual interest in London’s property market by foreign investors is the reason why prices have rocketed past the £2m barrier.
With London being viewed as a safe haven for investments coupled with the fact that prices rarely fall with the legal system in Britain being quite transparent makes it all the more appealing to investors from abroad.
While this might be good news to some it will only make things worst for first time buyers who are already struggling to finally climb up the property ladder.
With this latest report, first time buyers are facing a ‘double blow’, with the ending of a two-year exemption on stamp duty and a three per cent annual leap in asking prices for their target market.
According to Miles Shipside, director of Rightmove, he believes that the reason why investors find housing in areas such as Kensington & Chelsea appealing is due to the fact that the area is close to good schools, upmarket shops and is in close proximity to the capitals business districts.
Across Britain, the typical property asking price rose to £236,939 in March, a 4.9% rise over the first three months of this year and the largest first quarter increase since 2004, the Rightmove house price index found. Meanwhile, London asking prices reached a new high of £455,159, up 7.3% year-on-year.