House Prices in London Still in Decline According to ONS
The Office for National Statistics (ONS) reported that in May the house prices in London declined at the largest level since August 2009 which recorded a decline at 7%. Therefore, not since the financial crisis has there been such a dramatic decline. The annual comparison between May 2018 and May 2019 revealed a decline of 4.4%. It may not be at the same level as 2009, but ten years later it is the deepest since that time.
House prices in the capital have taken an impact due to the fact that fewer investors are present in the market. Higher stamp duties for homes at the levels of those on the market in London are costly. Despite lower interest rates remaining available from lenders, the house prices in London are still out of reach of most buyers. Also, there are areas around London that even though they require a commute, buyers are showing strong interest in with newer builds, better pricing, and strong community interests.
It is also thought by experts that many interested in the London housing market, due to the substantial costs and investment, could be waiting out Brexit before committing.
The average house price in London according to the Land Registry is at £457,000 and overall in the UK it is at £229,000 in May.
Some fear that London activity could trickle down to other areas in the UK, but so far that hasn’t been the case with some believing that there is a natural correction at play in the London market due to other areas showing steady and strong growth.