Beware of Average

1969: Beta Mathematics - Goddard

The average London house price is on a slow rise according to the research and data from the BBA (British Banking Association). The average London property is now worth £409,447 (May 2012) which is the highest average figure that has been achieved on record. This is helping equity levels within property, but of course is only a part of the picture. The reality is that inflation has accounted for a significant part of the improving property prices which slumped or devalued, whichever your preference, from around 2007. However since then, prices have recovered in most London Boroughs to levels above the 2007 peak. Indeed the average property price in Hammersmith and Fulham (4th) is now £649,114, Richmond is now 5th at £599,311, Wandsworth is 7th at £499,492, Merton is 11th at £423,689, Kingston 17th at £361,362,. The highest average property price being found in the Borough of Kensington and Chelsea at £1,439,897. The lowest average price of all London Boroughs (33rd) was in Barking and Dagenham at an average price of £175,235.

This is where statistics can often be used to suit your argument and much caution is required. Whilst it may be true that the average price of property in London is rising this and is now £409,447 the mid-point average property is actually £364,411. This is because those Borough’s at the top end distort the average number significantly by 11%. Indeed the majority (60%) of Borough’s have an average price below £400,000. All I’m really saying is that the adage location, location, location very much holds true when buying property. Of course, your residence is your home and not an investment.