City of London house prices increased more than London average in June

House prices increased by 3.5% – more than the average for London – in City of London in June, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 7.3% over the last year.

The average City of London house price in June was £830,376, Land Registry figures show – a 3.5% increase on May.

Over the month, the picture was different to that across London, where prices increased 1.9%, and City of London was above the 1% rise for the UK as a whole.

Over the last year, the average sale price of property in City of London rose by £57,000 – putting the area 18th among London’s 33 local authorities with price data for annual growth.

The highest annual growth in the region was in Kensington and Chelsea, where property prices increased on average by 12.2%, to £1,362,000. At the other end of the scale, properties in Camden gained 1.9% in value, giving an average price of £830,000.

An imbalance between supply and demand for properties has remained the primary reason behind climbing house prices across the UK throughout the pandemic.

But activity is starting to slow, with soaring inflation putting household budgets under pressure.

First steps on the property ladder

First-time buyers in City of London spent an average of £852,000 on their property – £58,000 more than a year ago, but £103,000 less than in June 2017.

By comparison, former owner-occupiers paid £817,000 on average in June – 4.1% more than first-time buyers.

How do property prices in City of London compare?

Buyers paid 54.4% more than the average price in London (£538,000) in June for a property in City of London. Across London, property prices are high compared to those across the UK, where the average cost £286,000.

The most expensive properties in London were in Kensington and Chelsea – £1.4 million on average, and 1.6 times as much as more than in City of London. Kensington and Chelsea properties cost four times as much as homes in Barking and Dagenham (£342,000 average), at the other end of the scale.

The highest property prices across the UK were in Kensington and Chelsea.

Factfile

Average property price in June

City of London: £830,376London:£537,920UK: £286,397

Annual growth to June

City of London: +7.3%London: +6.3%UK: +7.8%

Highest and lowest annual growth in London

Kensington and Chelsea: +12.2%Camden: +1.9%