London continued to see an imbalance between supply and demand in May, which Chestertons estate agency said puts further pressure on prices in the capital.
In May 2022 there was a 57% annual uplift in buyers compared to a decline in the number of available properties, by 14%.
The typical London price is now £541,942, while growth could continue as international buyers return.
London has been on the up in terms of house price growth for some time, as the government’s UK house price index shows that prices increased by 7.9% in the year to April 2022 in the capital.
There’s also been strong rental growth, which has spurred on some investors to buy in the city.
Richard Davies, managing director of Chestertons, said: “As the UK’s capital, London’s property market remains a hotspot and attracts a wide demographic of property buyers.
“Our branches receive enquiries from families, couples and investors but, particularly post-pandemic, we are seeing an uplift in the number of international students, international buyers as well as office workers who require a pied-à-terre closer to work.”
Davies added: “With the Bank of England putting up interest rates more than once this year, many house hunters have established a stronger sense of urgency to buy before further rate hikes. Therefore, this month’s increase in the base rate would have driven buyer enquiries in May.”
The London areas that have seen a particularly increase in buyer enquiries last month compared to May 2021 are Tower Bridge, Islington, Hampstead and Westminster, Chestertons added.