Just like our previous blogs where we stated that UK housing had come to a halt and that London was showing lower rates than ever before, London has once again taken a financial hit on the property market.
The property market is experiencing more and more reductions in both pricing and productivity which are having a knock-on effect on the homeowners buying and selling. The Telegraph recently reported that properties for sale in London have experienced a price slash which is a clear reflection of the slowing down nature of the property market and those caught up in it.
Price Drop Inevitable
The price drop that has taken place is only minor but it is inevitable from following the recent trends on the market. Zoopla has shown that 35.3pc of homes on the market in the London area have had their prices reduced, a figure which has risen since the 29.7pc recorded in February.
The Royal Institute of Chartered Surveyors have recently been reporting on the fact that the housing market was coming to a halt and London was no exception. As well as sales slumping, the HMRC found that there was a significant drop of numbers recorded between May and June of 2017. With the major effects changing the London property market, it was the expensive properties that took the brunt of the political aftermath early last year.
Boroughs Deeply Affected
On a whole, there are certain boroughs that are affected more than others. In this case, it seems that all boroughs are affected equally with Richmond and Kingston-upon-Thames being hit the hardest with a 45pc of properties having their values slashed. Hammersmith and Fulham were unaffected in this terms price slashing and the rest of the UK actually saw increases.
Although the prices seemed to pick up in April this year, the Office for National Statistics actually stated that there was a slowdown from the usual annual increases. “London – where annual growth had slowed to 1.5pc – accelerated once more with prices up 4.7pc in the 12 months to April” but then significantly dropped from April onwards (The Telegraph).
Housing Market Halt
First-time buyers are still struggling to get on the market and the prices being slashed aren’t exactly making a massive difference. As well as the impact of Brexit, homebuyers are being affected by low unemployment rates, low-interest rates, strong demand and a lack of homing which is giving them no confidence at all in the housing market.
With the chief executive of HouseSimple saying that there are plenty of sellers “still hoping to market at mid-2016 prices, but it’s a different market now, post-Brexit and the general election”. “Anyone committed to selling may have to accept that they need to drop their prices if they want to attract buyers” which is, therefore, resulting in a drop in housing prices and a severe lack of property available from those who don’t want to lower their rates.
Get in Touch
If you are going through the process of buying or selling and need professional guidance or surveys, get in touch with me and call 01983 731 198 today. With many years of experience working in all climates of the housing market, I can advise on the best options to take with your property and the situation you are in.