Housing in London report
The Housing in London 2018 report is the evidence base for the Mayor’s housing policies. The report 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 new London Housing Strategy and it can be downloaded here.
The Greater London Authority also publishes quarterly Housing Research Notes. The latest is an analysis of housing supply in London and can be found 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 the London housing market, including prices, rents, repossessions and new housing construction. This summary draws on official statistics and other 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 22 June 2018, and is 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 in published data.
- In March 2018, the average house price in London was £476,000 (See chart, ONS, seasonally-adjusted)
- This is a decrease of 1% on one year ago, and is the lowest level of price growth in an English region over that period.
- Private rents in London increased on average by 0% in the year to April 2018. Private rents increased by 1.7% in the rest of England (See chart, ONS).
- London had a lower rate of growth in private rents than any other English region.
- 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 over a year (ONS).
- The typical first-time buyer in London took out a loan of 4.02 times their income in Q1 2018 (see chart, CML). The Bank of England only permits 15% of lenders’ new mortgages to be at loan-to-income ratios of 4.5 or higher. This will act as a constraint on further increases in first-time buyer loan-to-income ratios.
- There were 42,200 new mortgages advanced to first-time buyers in London in 2017/18, 1% more than in 2016/17 (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.
- However, according to RICs data, surveyors are now reporting that new buyer enquiries and new instructions to sell have begun to increase.
Landlord and mortgage claims/repossessions
- 10,800 rented homes were repossessed by court bailiffs from private or social tenants in London in the last year (MOJ). This is 25% fewer than the previous year.
- 340 mortgaged homes were repossessed, an increase of 4% on 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 (see chart). This was 4,600 more than were completed in 2015/16 (London Development Database).
- 34,600 Energy Performance Certificates (EPCs) were granted in 2017/18 (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 63,700 homes were granted planning approval in London in 2017, 18% more than in 2016.