Revealed: Are house prices rising in London?

House prices go up in London by 2.2%, lowest regional increase over the year to January 2022

House prices in London rose by 2.2% between January 2021 and 2022, which represented the lowest regional increase nationwide - Credit: PA Archive/PA Images

London house prices grew by the smallest margin in the year to January 2022, according to fresh data from the Land Registry.

A report found that while prices across the country grew by 9.4 percent during this period, the lowest annual growth of any region - 2.2pc - was seen in the capital.

To give this finding context, the average price of a property in England this January was £291,560.

So, while London's annual growth may be slower than the other regions nationwide, getting onto the property ladder still has its difficulties.

Even with incentives such as the stamp duty holiday no longer impacting the market, prices continue to rise in most places - though there are a couple of exceptions.

The chart below details the difference in the areas relevant to our readers.

Of those, the biggest annual increase was in Islington, where the average house price jumped from £670,707 to £760,282 between January 2021 and 2022.

In fact, its increase of 13.4pc eclipsed the national 9.4pc average.

While prices in the borough have grown by the biggest margin, the January average - £760,282 - is actually lower than the £764,286 recorded in December 2021.

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Next up is Barking and Dagenham, where the average increased by 10.6pc to £345,873.

Recently confirmed as one of the happiest places in the UK, a house would have cost an average of £312,740 in January 2021.

These are the only two areas we looked at where the increase has exceeded that seen across the country as a whole.

Otherwise, a clutch of boroughs including Barnet, Camden, Hackney, Havering and Newham saw prices go up by more than 5pc, but less than the 9.4pc national average.

As of January, a house in Barnet cost an average of £580,791 - up 7.7pc from £539,456 the previous year.

In Camden - where a home sold for £25.9 million in 2021 - the average house price was £852,153 in January, up from £799,565 the year before.

Though Camden has the highest average price of the areas included in this round-up, the 6.6pc increase seen over the year was not the biggest jump in London.

Hackney's annual increase of 8.9pc is the most closely aligned to the national average.

In January 2021, a house in that borough would have cost an average of £593,821.

Fast forward 12 months and that average falls just short of £650,000 - though there is still a relative bargain to be had.

At 5.4pc, house prices in Havering grew four per cent less than the average seen across the country.

That may not mean too much in real terms, however. 

Data for 2021 published by the Office for National Statistics (ONS) found that full-time workers could expect to spend more than 12 times their annual income on buying a home in the borough.

Twenty years ago, the average was 6.6 times a person's salary.

In January last year, the average price of a house in Havering was £380,518. That had risen to £400,902 by the same time this year.

Newham is the other borough where prices rose by more than 5pc in the year to January 2022.

Twelve months prior, the average cost was £384,331.

Prices broke the £400,000 barrier this January, when an average price of £406,632 was recorded.

At 4.8pc, the average increase seen in Redbridge fell just outside of the bracket above. 

While last January a house would have cost an average of £447,923, this figure leapt to £469,411 in the year since.

The other three featured boroughs - Brent, Haringey and Tower Hamlets - all rank among the 10 lowest annual price increases out of 333 local authorities in the UK.

While the most expensive property in Brent sold for just shy of £4m last year, the average house price during 2021 was more modest.

Last January, a house would have cost an average of £514,041. This rose by 1.5pc in the following year to £521,870.

Haringey and Tower Hamlets are the only boroughs where prices decreased between January 2021 and 2022.

A relatively small drop of 1pc was seen in Haringey, where the average price of a house fell from £590,704 to £584,798.

Tower Hamlets experienced a more pronounced decrease of 5.1pc. 

In real terms, this means that last year it would have cost an average of £462,063 to buy a house, compared with £438,375 this January.