London now has the fastest rising property prices in the south of England, according to the latest figures from lender Nationwide. Prices in the capital rose by 1.6% in the first quarter of the year.

Meanwhile data from estate agent Hamptons shows that a home in London is now more likely to sell above its asking price than elsewhere in England and Wales, providing further evidence of growing confidence in the capital’s housing market. Over a quarter (25.1%) of London homes for sale have gone for more than their asking price in the first three months of this year. Five years ago, just 13% of properties in London were going for above asking price.

"The increase in new enquiries is emboldening sellers to chance their arm at higher asking figures"

The time it takes for a home listed on the market to receive an offer is another major indicator of demand. Hamptons also reported that London has shown a bigger decrease on this measure than any other region, with the average home for sale in the capital receiving an offer within 57 days in the first quarter of 2024, compared with 81 days over 2023.

And a recent report by the ONS showed that London had the highest annual rent increases of any region in England in the 12 months to March 2024, at 11.2% – up from a 10.6% annual increase in February 2024. London estate agent and former RICS residential chairman Jeremy Leaf is optimistic about a very busy spring in the capital’s property market, reporting that “the increase in new enquiries is emboldening sellers, not only to make their properties available, but chance their arm at higher asking figures”. He added: “We need to bear in mind too that the latest house price indices from lenders such as Nationwide and Halifax do not include cash buyers which make up over a third of purchases and is a sector of the market which is active at present – and especially in London.”