Residential property prices in London appear to be following a downward trend – with reports in recent days suggesting that average values have fallen by as much as 15 per cent over the past year.
The general consensus among most commentators is that political uncertainties surrounding Britain’s upcoming departure from the European Union (EU) are deterring home-buyers and investors in the City.
The latest figures from property body Your Move reveal that average prices fell to £593,396 at the beginning of this year – while prices in boroughs such as Clapham, Putney and Balham were down by more than £100,000 year-on-year.
Meanwhile, property prices elsewhere in the UK appear to have increased during the same period – with North West England outpacing London as the fastest-growing property market in the UK.
Lucian Cook, Head of Residential Research at prominent estate agent Savills, said that London had enjoyed a decade of soaring price rises up until the Brexit vote and subsequent uncertainties surrounding Brexit negotiations – which appear to have hit values in the prime central market in particular.
However, the upside of this is that lower prices – coupled with recent reductions in the value of sterling – continue to attract wealthy overseas investors who are looking for a good deal, bolstering activity in the market.
Mr Cook said that the City was somewhat ‘more exposed’ to political and economic uncertainty – and that the prospect of interest rate increases later this year might also be deterring buyers. This suggests that values could be likely to continue to fall over the coming months.
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