London house prices dip nearly 4%: Land Registry

The average house price in London fell 3.8 per cent in the year to February 2019, according to data collected by Land Registry.

Meanwhile, across the UK, year-on-year, the average house price grew 0.6 per cent.

Between January 2019 and February, meanwhile, house prices fell 0.8 per cent throughout the UK – leaving the average property price at £226,234.

The data is broken down to detail England, Wales, and London.

In England, average house prices fell 0.6 per cent in February, while on an annual basis this figure was up 0.4 per cent. This equates to an average property price of £242,964.

Regionally, the North West saw the highest monthly rise, at 1.3 per cent. This was followed by the East of England, at 0.5 per cent.

In contrast, Yorkshire and the Humber recorded the largest fall at 2.5 per cent.

Looking at Wales, average house prices fell 0.2 per cent in February. However, annually they rose 4.1 per cent – leaving the average property price at £159,559.

In London, average house prices fell 2 per cent on a monthly basis, and as mentioned, 3.8 per cent annually. This equates to an average property of £459,800 in the capital.

MT Finance director Joshua Elash comments: “London is by far the biggest, and most important, market. It is here where the war of attrition that is Brexit is being most painfully felt.

“[The annual price drop seen in London], down from a fall of 2.2 per cent in January 2019, is massive. This represents billions of pounds of lost value over a four-week reporting cycle.

“The market is not just stagnating from a lack of transactional volume, it is bleeding value.

“Unless the government wakes up and begins to think about encouraging and supporting a market intentionally subdued by regulatory and tax changes, and further dampened by Brexit uncertainty, it is only going to get worse.”

Unmortgage chief executive Ray Rafiq Omar adds: “The slowdown in house prices is not surprising as the market continues to lack any movement, not helped by the stamp duty increases a few years ago for high value homes, with many families choosing to improve rather than move.

“Government intervention has been the cause of this house price slowdown – so it remains in the government’s hands to return to domestic policy issues, such as housing and homeownership, sooner rather than later.

“We have a clear supply and demand problem which needs to be addressed, causing high prices and limited home ownership in the younger generations.”

Foundation Home Loans marketing director Jeff Knight says: “While the Brexit delay may not exactly unleash a bottleneck of potential buyers, it will certainly help confidence in the market and we can expect to see activity increase over the next few months – particularly out of London.

“Sellers will be keen to jump on an opportunity to upwardly revise their asking prices as we move towards the summer months, but there is a limited window of time before this falters.

“So-called ‘second steppers’ are likely to continue regardless, but for FTBs still struggling with limited options, the rental market will remain the long-term choice.”

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