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LONDON’S PROPERTY MARKET UPDATE

The property market is constantly fluctuating due to a number of economic, demographic and social variables – such as the country’s decision to leave the EU, interest rates, inflation, population growth and the rate of houses being built. Recently, London has become the victim to a decrease in property prices for a number of reasons.

The current London property market is in doubt with the EU leave date looming over. Over 30 property experts were polled by Reuters and questioned about the state of the London housing marketing in relation to Brexit. On average, they decided that housing prices would deflate by 1% during 2018 with one expert claiming that the values of houses would drop by 6%. This is a stark contrast to the rest of the UK, where prices are expected to increase by 1.7% on average and many regions are experiencing their highest ever prices.

Jonathan Hopper from Garrington Property Finders said buyers are “sensing blood in the water”, forcing selling to lower their prices as buyers wait patiently. “London is paying a painfully high price for its stellar run of price rises and a correction is now under way in several parts of the capital” he claims.

Decreasing House Prices in the UK’s Capital

Figures from the Office for National Statistics show that house prices in London have decreased by 0.7% from March 2017 to March 2018. This is the biggest drop since the fallout of the credit crunch back in 2009. There is a real slowdown of increasing housing prices in London as potential buyers wait until Brexit has been negotiated and executed to make a move. The decision to leave the EU has also said to have deterred potential buyers from buying property in the Capital.

The net migration from European countries has fallen, meaning there are a lot less potential buyers from overseas looking to London’s market. The Financial Times also reported that there has been a significant drop in Chinese investors purchasing property in London since the BREXIT vote.

London Remains Strong Despite Decreases

Despite the predicted declines, properties in London still stand as the highest in the UK and it seems as though property prices in the Capital are as always, very strong. Sellers should be careful that prices are doing to dip as Brexit holds off potential buyers in London and abroad, however it is important to note that “first time buyer” properties, such as affordable 1 and 2 bedroom flats circa the £500,000 price range are literally still “flying off the shelves”!

If you’re worried selling your property in the wrong climate, our team at Westcolt Surveyors can help you to decide whether it is a good time to sell, or whether you could take a good rental income until the immediate future of the Capital’s property market is more certain. Get in touch today for more information.

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