Southwark house prices increased more than London average in May

File photo dated 14/10/14 of a sold and for sale signs. A gradual slowdown in the housing market in Scotland is likely as the cost-of-living crisis bites, a report has warned. House prices in Scotland continue to edge upwards but indicators are softening slightly, according to the Royal Institution of Chartered Surveyors (Rics) latest survey. Issue date: Thursday May 12, 2022.

House prices increased by 1.5% – more than the average for London – in Southwark in May, new figures show.

The rise contributes to the longer-term trend, which has seen property prices in the area grow by 5.1% over the last year.

The average Southwark house price in May was £538,599, Land Registry figures show – a 1.5% increase on April.

Over the month, the picture was different to that across London, where prices increased 0.2%, and Southwark was above the 1.2% rise for the UK as a whole.

Over the last year, the average sale price of property in Southwark rose by £26,000 – putting the area 22nd among London’s 33 local authorities with price data for annual growth.

The highest annual growth in the region was in Islington, where property prices increased on average by 12.2%, to £742,000. At the other end of the scale, properties in Westminster lost 1.1% of their value, giving an average price of £881,000.

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.

Sarah Coles, senior personal finance analyst at financial advice company Hargreaves Lansdown, said:“The average house price hit another record high in May, and rose faster than any time since the peak in June last year.

"However, we’re starting to see small changes in the market, which are likely to mean weaker growth in the coming months, especially if interest rates are hiked in August."

First steps on the property ladder

First-time buyers in Southwark spent an average of £468,500 on their property – £20,500 more than a year ago, and £4,900 more than in May 2017.

By comparison, former owner-occupiers paid £655,500 on average in May – 39.9% more than first-time buyers.

Property types

Owners of detached houses saw the biggest rise in property prices in Southwark in May – they increased 2.7%, to £1,912,029 on average. Over the last year, prices rose by 12.5%.

Among other types of property:

Semi-detached: up 2.2% monthly; up 9.7% annually; £1,106,773 averageTerraced: up 2.1% monthly; up 7.7% annually; £801,636 averageFlats: up 1.2% monthly; up 4% annually; £457,811 average

How do property prices in Southwark compare?

Buyers paid 2.4% more than the average price in London (£526,000) in May for a property in Southwark. Across London, property prices are higher than those across the UK, where the average cost £283,000.

The most expensive properties in London were in Kensington and Chelsea – £1.3 million on average, and 2.4 times as much as more than in Southwark. Kensington and Chelsea properties cost 3.8 times as much as homes in Barking and Dagenham (£345,000 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 May

Southwark: £538,599London:£526,183UK: £283,496

Annual growth to May

Southwark: +5.1%London: +8.2%UK: +12.8%

Highest and lowest annual growth in London

Islington: +12.2%Westminster: -1.1%