Following the latest Government advice on home moving during the Coronavirus (Covid-19) outbreak, find out more on how we can support your conveyancing journey.
Property price growth is on the slide in London. New data has revealed that two-fifths of postcodes in the capital showed a fall in annual property prices, down to 1 percent from 4.3 percent a year earlier.
The figures from Hometrack showed that 42 percent of London postcodes actually had negative house price growth, the worst figures seen in a decade.
Hometrack’s monthly house price index said “weak demand” was translating into a fall in house prices in London. Meanwhile, Edinburgh’s house price growth is now at 8.0 percent with Liverpool just behind at 7.8 percent, followed by Birmingham and Leicester at 7.7 percent.
Of the 46 local authorities in London, 15 saw house prices fall in the last year. The biggest drop was in the City of London (7.9 percent), but property hotspot such as Camden (1.9 percent) and Islington (1.4 percent) also registered a decrease.
Factors impacting sales
According to Hometrack, which analyses the UK property market, there are several factors to blame for the drop in London house prices. Its monthly report stated: “This is a result of tax changes impacting overseas and domestic investors and stretched affordability levels for owner occupiers that have been compounded by Brexit uncertainty.
“Sales volumes are first to be hit when demand weakens, and housing turnover across London is down 17 percent since 2014.
“Prices are next to follow, but the scale of current price falls remain modest.”
While sellers may not be achieving the price they hoped for when marketing their property, falling prices are an opportunity for buyers to secure a better deal. Give the expert team at Capital Conveyancing a call on 0207 406 5880 to kickstart your sale or purchase in London.
Fran is the content writer for Capital Conveyancing, producing articles on all aspects of the conveyancing process and around the UK property market in general. If there is a topic you'd like to see covered on these pages, please drop Fran a line on [email protected]