House Prices of London Drop While Rest of UK Continues to Improve

Last month, the house prices in London dropped even as the rest of the United Kingdom continued to improve.

The average house price of Greater London was down by 0.8 percent on the month to £593,396. According to Your Move, the figure represented a 2.6 percent decrease in prices since this time in 2017.

The largest annual declines were observed in Wandsworth (14.9 percent), Southwark (12.2 percent) and Islington (8.8 percent).

Boroughs which started out with lower prices had better figures. The average house price of Bexley was up by 4.5 percent to £363,082. Waltham Forest was the only area to achieve a new peak average price amounting to £464,872.

However, overall, the cheapest third of the borough of London still experienced a drop in prices, down by 0.5 percent from a year ago.

Transactions in London were also down by five percent in the three months to January of this year.

The figures contrasted with the national picture, as annual house prices for the United Kingdom grew by 2.5 percent excluding the South West and London. However, with the drop in the capital and the Home Counties included, the growth was only at 0.6 percent, as compared to the 0.7 percent in 2017.

The managing director of Reeds Rain estate agents and Your Move, Oliver Blake, stated: “When examining the bigger picture, house prices are steadily balancing to meet the needs of house buyers which is welcome news for those looking to take their first steps onto the property ladder.”

However, he added that housing supply is still unable to meet the demands.

“The industry needs to work together to provide a long-term solution to increase movement within the market,” he said. “By building more homes and introducing more initiatives for each stage of the property lifecycle we should start to see more choice for first-time buyers, second steppers and last-time buyers.”