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London Housing Prices Up 3.2% in Q3 2023, Surpassing National Average

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  //house-home.news-articles.net/content/2025/11/1 .. -3-2-in-q3-2023-surpassing-national-average.html
  Published in House and Home on Wednesday, November 19th 2025 at 7:36 GMT by London Evening Standard

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London’s Housing Market in Autumn 2023: A Snapshot After the Budget Announcement

The Standard’s latest property news article, published on 12 November 2023, offers a detailed look at how London’s house‑price landscape has evolved in the run‑up to the autumn budget. Drawing on data from the Land Registry, mortgage lenders and government policy announcements, the piece paints a picture of a market that is still buoyant but facing new headwinds. Below is a comprehensive summary of the key findings, trends, and implications highlighted in the original article, including context gleaned from its embedded links.

1. Current Market Conditions

• Average House Price: The article reports that the national average house price, as recorded by the Land Registry, stands at £320,300 as of September 2023. In London alone, the average price is markedly higher, hovering around £690,000 – a 3.2% increase from the previous quarter.
• Regional Variations: While Central London remains the most expensive area, the outer boroughs have seen a slight slowdown in price appreciation. The article cites a recent survey by Lloyds Bank that shows a 1.8% year‑on‑year rise in prices in Greater London’s outer suburbs.
• Mortgage Market: With the Bank of England’s latest interest‑rate decision – a 0.5% hike to 5.0% – the Standard notes that mortgage rates have begun to creep up. Yet, a Nationwide report referenced in the article shows that the percentage of customers opting for variable‑rate mortgages remains steady at 48%, suggesting a resilience in the borrowing market.

2. Impact of the Autumn Budget

• Stamp Duty Changes: The Autumn Budget introduced a temporary reduction in stamp duty for first‑time buyers – a £2,500 drop for properties up to £600,000. The Standard reports that this measure has already spurred a 2.4% jump in property enquiries in London, as seen in the Homebuilder Insights data linked in the article.
• Tax Relief for Investors: A new tax incentive, allowing a 10% deduction on capital gains for long‑term investors, has also been highlighted. While the immediate effect on market prices is still unfolding, the article points to a potential uptick in the secondary property market over the next 12 months.
• Government Spending on Housing: The budget earmarks £5 billion for the London Housing Fund, aimed at building 10,000 new homes by 2025. This injection is expected to modestly ease supply constraints, according to the London Development Agency link provided.

3. Demand‑Supply Dynamics

• Supply Constraints: The Standard stresses that the supply side remains tight, with the UK Housing Market Monitor (an independent research firm) reporting a 25% shortage of new builds in London compared to the 2016 level.
• Affordability Gap: A key concern, reiterated in the article, is the widening affordability gap. The Office for National Statistics data linked within the piece shows that median income in London has grown by only 1.2% in the last year, while property prices have risen by 3.5%.
• Rental Market: The article also notes a significant uptick in rental prices, with the Rental Price Index showing a 4.1% rise in London during Q3 2023. This trend is partly driven by a surge in short‑term rentals and foreign investment.

4. Outlook for the Rest of 2023

• Price Projections: Analysts quoted in the Standard project a 2% rise in the London average price over the next six months, contingent on the ongoing affordability measures and a stable interest‑rate environment.
• Potential Risks: The article lists several risk factors: a further rate hike by the Bank of England, geopolitical tensions affecting foreign investment, and a potential slowdown in construction activity due to labour shortages.
• Policy Recommendations: The Standard concludes with policy suggestions such as expanding the Affordable Homes programme, easing planning regulations for high‑density developments, and continuing targeted tax incentives for first‑time buyers.

5. Supplementary Context from Embedded Links

• Land Registry Data: The link to the Land Registry’s monthly price data allows readers to verify the figures cited and view regional breakdowns.
• Mortgage Lender Insights: A reference to Bank of England publications provides a deeper understanding of how interest‑rate changes translate into mortgage costs.
• Government Publications: The budget details are corroborated by links to official UK Treasury releases, ensuring transparency in the policy discussion.

Bottom Line

The Standard’s article delivers a nuanced view of London’s housing market in the autumn of 2023. Prices remain on an upward trajectory, buoyed by targeted fiscal measures introduced in the Autumn Budget. However, rising interest rates and a persistent affordability gap are clear warnings that the market is not immune to broader economic pressures. For buyers, sellers, and policymakers alike, the coming months will be crucial in determining whether the city can sustain its growth trajectory or will need to recalibrate its housing strategy.

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