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If you thought you never stood a chance of moving up in the London property market, now could be your chance. According to the latest data from the Land Registry, some homes in London are falling faster than anywhere else in the UK – although still remain higher than the national average.
The Land Registry data reveals that detached properties in the capital fell in value by more than £50,000 in one year and is driving the rest of the market to slow down. In May 2018, you could purchase a detached home for an average of £900,000, but this fell by 6.1% to less than £850,000 by May 2019. Annual property prices rose overall by 1.2% in the UK, which slowed from 1.5% in April 2019.
There are currently a range of factors affecting the London property market specifically. The obvious impact could be Brexit and the surrounding uncertainty which may be deterring any foreign investment at the moment. However, there have also been a number of measures introduced in recent years aimed at Buy to Let investors, such as mortgage rate relief and increased stamp duty on second homes, which could bring less buyers to the market.
The 6.1% fall in detached homes adds to further 5% drops in values among flats and maisonettes. Prices overall fell 4.4% in the year to May 2019 – the biggest drop since the 7% decrease was recorded during the financial crisis in 2009. However, the average London home is still priced higher than the national average of £229,000, with a home in the capital costing £457,471.
As housing shortages and affordability talks continue in the property market, it remains to be seen whether the property market in London can recover – even after Brexit is done and dusted.
If you would like some advice about your own property investment portfolio, or you’re thinking of starting out as a landlord, contact the Property team at Downs Solicitors to see how we can help.