Survey Reveals the Most Expensive Streets to Purchase a House
London continues to hold its title as the hub of luxury property in the UK, with Buckingham Gate in Westminster commanding the highest average asking price, according to a recent survey by Rightmove. The prestigious street, located near Buckingham Palace and St. James’s Park, boasts an average asking price of £9,633,333. Other London areas that made it to the list of the most expensive locations include Holland Park, St. John’s Wood, Maida Vale, and Knightsbridge, where property prices range from £4,834,500 to £6,332,000.
However, for those who cannot afford the sky-high prices in the capital, there are still options outside of London. Streets in Surrey, Hertfordshire, Essex, and Leicester also made it to the list of the most expensive locations. Old Avenue in Weybridge, Surrey, listed a home for £2,633,333. It seems that even outside of London, luxury comes at a hefty price.
Interestingly, Rightmove noted that these expensive properties often attract the most views on their website. While only a lucky few can actually afford these prestigious homes, there is undoubtedly a fascination with the world of luxury real estate. Perhaps it is the allure of living in the lap of luxury that draws people to view these properties, even if they can only dream of owning one.
Not only are house prices soaring, but rents in London are also reaching dizzying heights. Albion Street in Bayswater takes the crown for the most expensive rental street in London, with prices going up to a staggering £20,857 per month. Pavilion Road in Knightsbridge and Duke Street in Mayfair also join the ranks of the most expensive rental streets, with monthly rent prices of £15,251 and £14,441 respectively.
While these figures may be exciting for those with deep pockets, they paint a stark contrast to the reality faced by average Britons. A survey conducted by Nationwide Building Society revealed that the ongoing cost-of-living crisis has severely impacted the prospects of first-time buyers. Nearly half of the respondents, 48 percent to be exact, stated that the high cost of living has affected their ability to own a home. One in five respondents said they were unlikely to afford a home until their 40s, a significant increase from the current average first-time buyer age of 33.
Buyers cited difficulties in saving for a deposit and finding properties within their price range as major challenges. The survey also highlighted that 14 percent of respondents found it difficult to afford monthly repayments, while one in ten struggled to borrow enough for a mortgage.
The Bank of England has maintained interest rates at 5.25 percent, with Governor Andrew Bailey stating that further evidence of inflation easing is necessary before rates can be lowered. Drops in mortgage rates are dependent on various factors, including inflation, swap rates, and unexpected economic shocks. Consequently, the housing market’s near outlook remains cautious, according to the Royal Institution of Chartered Surveyors (RICS).
Mortgage providers initially lowered rates earlier this year due to competition in the sector. However, these lower rates came amidst high mortgage costs overall and during a cost-of-living crisis. As a result, many Britons are deterred from entering the housing market.
RICS analysis predicts long-term growth in residential sales activity but expects rents to continue rising at a slower rate. In the 12 months leading up to January, private rental prices in the UK increased by 6.2 percent, with Wales experiencing the highest annual increase at 7 percent.
While the luxury property market in London continues to thrive, it is essential not to overlook the challenges faced by average buyers and renters. As house prices and rents soar, many are left struggling to save for a deposit, find affordable properties, and make monthly repayments. The dream of homeownership remains out of reach for a significant portion of the population, emphasizing the urgent need for solutions to address the cost-of-living crisis.
