As always, there is a constant number of reports published with relation to the UK property market, and in particular, the property market in London, given our economy is strongly dependent on it.
Recent home buyers won’t be too excited at the figures shown below, but I personally think there is nothing major to worry about since the implementation of tougher buy to let and home mortgage rules which have been put in place to prevent a crisis like the last.
Official research from Land Registry figures reveal the fall in the London property market has gathered pace with prices dropping as much as 0.7 per cent in the year to May.
The average home in the capital was valued at £471,944, now down around £4,500 on a year previously.
It was the second consecutive month of declines and the biggest annual fall since September 2009 when the economy wasn’t in the greatest of places following the financial crisis.
The latest fall came as an economist at the Office for National Statistics said the drop in London prices was partly the result of the Brexit vote. I know that anything negative (economy related) is always blamed on Brexit, not sure if I agree with all aspects, but, i am sure everyone in the UK would like to see the back of Brexit sooner rather than later.
Kishan Rana said it “may have deterred foreign buyers”, adding: “With the uncertainty regarding Britain’s political and economic environment, perceptions of the future value of London property have been adversely affected.”
Figures show prices are now in reverse in almost half of London’s local authority areas.
The biggest annual fall was in the City of London where the average price dropped 13.1 per cent to £742,490.
In contrast to London, house prices across the UK continued to rise, increasing 4.2 per cent in a year to an average of £224,000.
Given the news, are you still investing in the London property market? if so, tell me where and why and I look forward to discussing with you further.
Thank you for taking the time to read and I hope it gave you a helpful insight into where the london property market is currently.