London house prices begin to weaken
For the first time in over eight years, house prices in London have started to decline, whilst prices across the UK continue to climb.
The drop has been attributed to the adjustments made by sellers of more expensive homes in desirable inner London areas following years of spiralling price rises. London prices fell by on average 1.5 per cent or (£9,400).
It seems family homes have been the hardest hit by the decline, with an average 5-bedroom house now selling for around £1.49-million. This average represents a drop of around 7.3 per cent in comparison to prices back in April 2016.
“Sellers in the capital are having to trim their price aspirations to try to tempt spring buyers to buy their property instead of one down the road,” claimed Rightmove’s Miles Shipside.
“While the year-on-year fall of 1.5 per cent is the worst for nearly eight years, it needs to be put into the context that overall prices are still an average of only £10,000 below their all-time high. Demand continues to be strong, but at the right price for the right property.”
It seems the average price declines at least give some buyers a bit of financial relief. For example, if you bought a house in inner London for around £800,000, you could now potentially save £35,500, covering your stamp duty. The prices will however continue to make it very difficult for first-time buyers to climb onto the property ladder. And despite the average price declines, London will continue to be universally unaffordable.