London has now been named as the region with the second lowest house price growth across England and Wales.
Although the capital experienced a growth of 1.4% annually, in April average house prices across London fell by 0.1%, the latest House Price Index for England and Wales by Your Move has revealed.
This recent development sits in rather extreme contrast to the strong house price growth happening in the year to April 2016, when prices increased by 13.6%. This was mainly due to investors trying to secure a property before the new stamp duty regulations kicked in.
The ones struggling the most are high-end properties. Purely ranked by price, London’s eleven most expensive boroughs only saw an annual increase of 0.3%, whilst the cheaper areas had an annual growth of 4%.
The Council of Mortgage Lenders explained the slowdown in house price growth, which was most noticeable in London but could be felt across the country, with the country’s choking housing supply.
According the the CML, the market is currently driven by first-time buyers rather than investors. And those only just making their first step onto the property ladder are more likely to be looking for cheaper properties, leading to less interest in the upper market section and therefore smaller price growth.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said:
“Real transformation is needed to address the housing supply shortage. Recent reports from House of Commons committees have made a strong case for the government to do more.”
“As manifestos are published ahead of the upcoming election, we hope there is commitment to bridging the gap between supply and demand which will stimulate more market activity, stability and enable more people to secure their dream home.”