The Average House Price in Islington is just that: an Average

The most interesting subject for us, second to the weather, is the state of the property market and its average house prices. However, the UK's property market is often not relevant on a local level in Barnsbury, Angel, Canonbury, and other areas - for Islington homeowners.

You may have come across headlines claiming that UK house prices are hitting record highs, falling, or remaining stagnant. These headlines often focus solely on average house prices. For homeowners in Islington, this is largely irrelevant for two key reasons: the type of property (house) and the definition of price.

For what exactly is a house and what is a price?

In a recent article, published on November 7th, it was stated by Halifax that house prices have reached a record high. Great news for the UK's property market. However, the article only covers the average house price, and nowhere does it mention the words flat/apartment, detached, semi-detached, terraced, or bungalow. It also doesn't mention what a price is; is it the asking price, the completed sale price as registered on the Land Registry, or is it the average price currently granted by the lender (Halifax and Nationwide) for a mortgage?

Property prices generally trend upwards over time - it’s almost as predictable as the stock market. However, not every property type follows this pattern. The Land Registry offers the most reliable insight into completed property prices, providing a clear reality check. The graphs below reflect registered sales up to August 2024. Keep in mind that for properties registered in August, the sales were likely agreed 3 to 7 months prior.

Interestingly, when we examine completed prices for flats and maisonettes, it’s evident that this property type hasn’t seen significant growth throughout Inner London and Islington. In fact, 2024 prices closely align with the 10-year average, with a maximum difference of around ￡30,000 - a relatively minor variation.

While the UK’s average house price has hit a new high - rising, for instance, by ￡30,000 from October to November based on mortgage approvals - this figure holds little relevance for you as an Islington homeowner. What truly matters is how property prices are changing in your local area, across different property types (as shown in the graphs).

Similarly, you may have seen headlines from property portals announcing record-breaking average asking prices for the UK. While interesting, this information is again largely irrelevant for Islington homeowners for two key reasons: Islington's market dynamics and property type.

First, average asking prices in Islington can follow a slightly different trend than the UK as a whole. Second, the asking price is not necessarily the expected selling price. For example, if your property could sell for around ￡1,260,000 in the coming weeks, that doesn’t mean it should be listed at that exact price.

There are many factors to consider (all covered in my Islington Seller's Guide), including the importance of property portal price brackets. Listing your property at ￡1,250,000—aligned with a key price bracket—can attract a wider pool of buyers searching within that range.

Don’t get caught up in national property market headlines. Instead, focus on local updates, like my monthly Islington Property Market ??, to stay informed. And when it’s time to sell, make sure you have a genuine conversation with an exceptional estate agent who can ensure the best and smoothest sale of your most valuable asset: your home. ??

#LittorinMeansLondon. Follow me on my socials @JacobLittorin

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