Another fall for London house prices brings down overall UK figures

 

Property prices in London slumped further downwards for the fourth month in a row, and though a collapse remains highly unlikely, predictions for the capital over the coming year remain muted.

While England’s average property price swelled by 2.9% in the year to May 2018, bringing the average value to £243,583, London suffered a 0.4% fall over the past year, marking the fourth consecutive house price drop for the capital on a monthly basis.
[crb_image link=”https://www.buyassociation.co.uk/advice/property-investment-starter-course/” image=”https://cdn2.hubspot.net/hubfs/1717782/Asset_Store/WebCTA/cta.jpg” align=”left”]
This is according to the latest UK house price index from the HM Land Registry and Office for National Statistics (ONS) released this week, which looks at all completed property transactions during the period for each month, in contrast to the Zoopla and Rightmove indices which focus on asking prices.

In total, 20 out of 33 London boroughs experienced a decline in their average property value on an annual basis to May 2018, with a typical home in the capital now selling for £478,853 – which is still by far the highest price in the country, and well above the UK average.

More falls expected in the capital

As London continues to struggle with deflating prices, with issues such as Brexit uncertainty and forthcoming interest rate rises affecting buyer confidence in the capital, most experts still agree that a full-scale collapse is highly unlikely.

Richard Snook, senior economist at consultants PwC, said: “Regional figures can be volatile from month-to-month but the figure supports an underlying weakness in the market, the latest figure for May shows that prices are 0.4% lower than the same time last year.

“In our regional forecasts we predict price falls in London in 2018 and 2019 of 1.7% and 0.2% respectively.”

North holding up price growth

Elsewhere in the country, though, the picture is far from bleak. In Manchester, for example, house prices shot up by 7.5% between May 2017 and May 2018, from £158,994 to £170,903, as the city gains popularity as a top investment spot and place to live outside the capital.

Birmingham also saw strong performance with a 6.9% rise over the year from £168,617 to £180,320, while the east Midlands as a region had the fastest growing house prices in the country with an overall average increase of 6.3%.

Leeds saw prices climb by an above average 4.3% annually, from £170,636 to £177,983, as the north continues to buck the trend for the country.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

LOndon

Another fall for London house prices brings down overall UK figures

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.