19 Mar London Housing Market 2018
London Housing Market 2018
The London housing market in 2018 is falling at its fastest rate since the start of the recession over a decade ago, this is driven by an uncertanty around Brexit and a glut of new high-end properties that people want nor can afford.
Figures show that the average home in Wandsworth, which includes Balham, Putney and much of Clapham have fallen by as much as 16% over the past year.
There are other London boroughs which are showing dramatic falls over the last 12 months, on average prices in Southwark has dropped steeply, for example, the average house is around £665,000 this has now dropped to £585,000 also prices in Islington have fallen from £750,000 to £684,000.
The London housing market over the last year is on average down by 2.6% and is continuing to drop. Long gone are the days of a quick house sale in London.
” The last time we saw such a rapid rate of decline in London was in 2009 during the last recession, which was related to the Banking crisis of 2008-2009″ Scott Mcardle quick house sale London HHB.
Bloomberg has reported that the capitals most expensive areas have been hit hardest and are seeing the biggest decline, these areas have seen a decade of soaring prices. London seems to be more exposed to any kind of political or economic uncertainty, the prospect of interest rate rise or mortgage limits, than any other area within the UK
Increased taxes on Investors has helped dampen demand from overseas, this has seen a record number of new homes being built without a potential buyer.
Brexit is one of many reasons why the London housing market is slumping, other reasons are, slower economic growth, inflation on the rise and the Bank of England increasing interest rises. All of these factors make potential buyers hold off from buying overpriced properties.
Usually offers to come in on properties around London are 10% below the asking price, while new potential buyers registering with Estate agents have fallen for the 11 month in a row.
This decline in activity has started to spread, according to our research the South East of England and the Home Counties are also experiencing the slowest growth since the 2009 recession.
This by comparison of other areas across the UK such as the North West, South West has swelled by more than 3% in the last year, with Blackburn being the best performing area with growth of over 16 %.
Having looked at all regions, the average cost of a property across the UK is now just shy of 300k at £299,556, up by £1500 on a month ago. But this doesn’t reveal the full story.
Last month marked the ninth consecutive month that the property market has slowed down, figures from Halifax released showed that the annual rate of growth has fallen to 1.8%.
This seems to be bad news for vendors looking for a quick house sale London but great news for potential buyers who are chain free looking for a good deal.
Scott Mcardle from Home House Buyers said: “This is welcomed news for buyers looking to get a foothold on the property ladder in and around London as for vendors who bought a year or so ago this isn’t welcomed news at all”.
Figures released recently showed earning growth outpacing house price growth for the first time in a while, although supply is still not meeting demand in London areas.