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Asking Prices in London Hit An All-Time High

Despite some political uncertainty, many London homeowners are putting their homes on the market, and for a lot of money

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A busy Picadilly Circus in London, U.K.

Julian Elliott Photography / Getty Images
A busy Picadilly Circus in London, U.K.
Julian Elliott Photography / Getty Images

Housing prices in London are on the rise, as the U.K. prepares for its upcoming general election.

In fact, the prices of properties coming to the market in the British capital are at an all-time high, according to the U.K.-based property site, Rightmove, which released its house price index Monday. The average asking price in Greater London for May 2017 was £649,864 (US$843,913), according to the report, up from £636,777 (US$826,918) in April.

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This bucks the usual trend, according to Rightmove, which has sellers staying put before major elections like the one coming up on June 8, when British citizens will vote for their prime minister.

Average asking prices for the most expensive market sector have also increased. The index reported a 9.8% change from April to May, with prices in May reaching £1,632,273 (US$2.1 million) from £1,486,709 (US$1.9 million). The annual change is up 7.8% for that sector, but is only up .7% for first-time buyers. Mid-level prices are down by 1.3%, the report said.

More properties have come to market than in the previous month, despite the approach of polling day often causing potential sellers to delay," Miles Shipside, Rightmove director and housing market analyst, wrote in a statement. "In addition, the average asking price of newly marketed property has hit an all-time high."

The monthly property price rise of 2.1% in Greater London may have to do with seasonal volatility, according to the index. It also reports the annual rate of change "remains subdued at 0.9% overall, with both Inner (+0.6%) and Outer London (+1.2%) seeing little year-on-year change."

Inner London asking prices in May are at an average £834,229 (US$1.08 million), up from April’s £803,346 (US$1.04 million), a 3.8% month-on-month change. Outer London prices came in at £526,404 (US $683,535), up from £525,969 (US $683,023), representing only a .1% difference.

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There are also more sellers coming to the market in London, according to the index, which reports a 4% increase in homes offered by new sellers. In the rest of the country, the number hasn’t seen any change.

"The uncertainty associated with an election has not deterred [sellers] from trying in increasing numbers and at an increased average price," according to Mr. Shipside said.