Housing in London report
The Mayor’s ‘Housing in London’ report sets out the evidence base for his housing policies, summarising key patterns and trends across a wide range of topics relevant to housing in the capital. The report has informed the development of the Mayor’s London Housing Strategy, which was published for consultation with Londoners in September 2017. The report can be downloaded here and additional resources can be accessed here.
You can also find out more about the different sources of housing supply data that the Greater London Authority uses here.
Quarterly Housing Market report
Below is a quarterly summary of key trends in London’s housing market, including prices, rents, repossessions and new housing construction. This summary draws on official statistics and some third party sources, and links in each case to the original source. Any queries regarding the data should in the first instance be addressed to the original source.
The summary was last updated on 23 February 2018, and will be updated on a quarterly basis. While the data shown is generally the latest available, users should note that changes in the housing market can take time to show up in published data.
- In December 2017 the average house price in London was £484,500 (ONS, seasonally-adjusted)
- This is an increase of 2.5% on one year ago, the lowest level of price growth in an English region over that period.
- Private rents in London increased on average by 0.4% in the year to December 2017. Private rents increased by 2.0% in the rest of England (ONS).
- London saw the second lowest rate of growth in private rents among English regions, higher than the North East.
- Annual private rent increases in London have been below annual wage increases for more than a year (ONS). Private rent increases have also been below the rate of Consumer Price Inflation for the last year (ONS).
- The typical first-time buyer in London took out a loan of 4.06 times their income in Q3 2017, the highest ratio on record. (CML). The Bank of England only permits 15% of lenders’ new mortgages to be at loan-to-income ratios of 4.5 or higher.
- There were 42,800 new mortgages advanced to first-time buyers in London in the year to September 2017, 1% fewer than the year (CML).
- Over the same period, the number of new loans to home movers in London dropped by 10% to 29,900 (CML).
- According to RICS data from their sample of London-based surveyors (weighted towards Inner London) sales as a percentage of surveyors’ stock continues to go down.
- New buyer enquiries also continue to fall.
Landlord and mortgage claims/repossessions
- 13,100 rented homes were repossessed by court bailiffs from private or social tenants in London in the last year (MOJ). This is 15% fewer than the previous year.
- 320 mortgaged homes were repossessed, 16% fewer than a year earlier (MOJ).
New housing supply
- In 2016/17 there were 39,560 new homes as a result of new building, converting houses into flats and changing commercial/industrial building into residential property. This was 4,600 more than were completed in 2015/16 (London Development Database).
- 35,100 Energy Performance Certificates (EPCs) were granted in 2017 (MHCLG). EPCs are required for all new dwellings, both new build and other types such as change of use.
- Figures from the Home Builders Federation (HBF) show that 55,400 homes were granted planning approval in London in the year to September 2017.