The latest UK House Price Index shows that London house prices climbed by 5.6% between August and July – a £27,810 leap.

Director of Benham and Reeves, Marc von Grundherr, commented:

“We’re now starting to see the London market accelerate through the gears where house price growth is concerned, with the largest monthly increase of all regions equating to a huge £28,000 jump in value in a single month.

There are two predominant factors driving this market revival. The first is a return to normality both in a social sense, but also with regard to our professional lives and the physical workplace. This as led to growing demand from domestic buyers which has laid a firm foundation for onward growth.

The second is an influx of foreign buyers who have had little choice but to sit on their hands during the pandemic due to widespread travel restrictions. Now that these are starting to lift, we’re seeing interest pour in from foreign lands and this is driving the market forward at speed.

The tapered end of the stamp duty holiday and a potential increase in interest rates is unlikely to deter this interest and we can expect the London market to continue to strengthen over the coming months, regardless of what might happen elsewhere across the UK.”