17 Jul London House Price Slump Over
Is The London House Price Slump Over?
Is the London house price slump over? Well over the last 3 years since the Referendum on Brexit the London housing market has by hesitant buyers which has to cause the overpriced London housing market to correct its self. But new research suggests that this could be coming to an end.
Zoopla has released their research which they carried out last month which suggests the London house price growth seems to be slowing. October last years saw the level of house price falls had stabilised with the number of areas in London registering a drop in prices from 81% in October to 67% today.
Property prices for the remained of this year will remain stagnant with them picking up in 2020 ” As the cost of buying in the capital realigns with average salaries, property experts predict prices will bounce back,” says Hunt.
Research also carried out by Zoopla’s competitor Rightmove has also found that the Londons housing collapse has slowed.
June 18to June 19 has shown prices across London fell by only 2% which is the smallest registered decline since January and nearly half of what prices drop to in March 3.8%.
It is believed the slight upturn in prices levelling is that first-time buyers are taking advantage of low mortgages rates, stamp duty new levels and the market slowing down.
Scott Mcardle from Home House Buyers said: ” It seems that the London housing market is coming to an end of a four-year repricing process, many of the London boroughs have seen a significant price allignment. The London housing market experienced significant prices rises from 2010 to 2016 and those rises are gradually being realigned”.
This is all part of the housing market cycles which see prices rise too high then there is usually a correction as the local people struggle to get on the property ladder which leaves a void at the bottom of the chain.
Homes and property have said ” even though market conditions are currently favouring first-time buyers, there is still such a gulf between wages and property prices’.
Even with the capital experiencing a property price correction the average price of a home is still £618,881, which is almost double that of the rest of the country.
The affordability factor of these houses is the biggest drag on the market, even though the sluggish price growth since Brexit, many buyers are still struggling to raise the capital requires for a mortgage deposit.
Halifax bank has carried out research on public service staffs wages which found that these workers, teacher, nurses, police officers, paramedics and firefighters can only afford houses in 9% of towns across Britain.
The bank also viewed housing affordability across five different professions in 515 towns which included London boroughs. The figures are shocking as only 40 out the 515 towns or 8% of these areas were affordable. This is down 24% since 2014.
In most of these areas, a house typically costs more than 17 times a public services staffs annual wage, London is, of course, the area which is least affordable along with the southeast of England.