London property values increase by more than £103,323 in four years

In just four years the average London property has risen in value by £103,323, new research by Gocompare reveals.

This means an average home in the capital will set buyers back £435,034, whereas in 2010 this figure stood at £331,711, reports propertywire.com. The research shows that the price gap between London and the rest of England and Wales is rather dramatic. Over four years house prices in the capital have risen 31.15 per cent, but when London is excluded, properties in England and Wales grew by just 0.16 per cent – an average of £217.38.

The further away from London a property is, the lower the value is, it seems. Properties in the North East are the worst off, as they have actually dropped in value by eight per cent, meaning the average home is now worth less than £100,000, reports mortgageintroducer.com.

Matt Sanders, mortgage spokesperson at Gocompare, says that the low interest rates and great mortgage deals mean that the market is currently a buyer’s one, even though the rules on lending have tightened.

“These figures will do little to comfort Londoners looking to get on the property ladder,” he states. “With the European elections behind us and British political parties now focusing on next year’s general election, balancing the housing market and preventing a London bubble, must surely be a key issue.”