Summer always sees a bit of a slowdown in house prices but this year it seems particularly striking, especially in London. The average asking price of a London home has dropped by just over £16K in the last month and it is the top end of the market that has been hit the most.
Boroughs such as Westminster, Chelsea and Kensington have been hit particularly hard and in some cases, house prices at the top end have been reduced by over £220K in the last 4 weeks. That’s a staggering 14% drop.
According to figures from Rightmove’s house price index, the average asking price of a residential property in London has dropped by £16,301 this month to £619,409. That’s a 2.6% drop overall.
This is the fourth time in consecutive months that house prices have dropped in the capital. Feeding into these figures you have the uncertainty that is still evident post-Brexit plus there was a rush of buy-to-let investment prior to April in order to avoid the hike in stamp duty prices.
Across the rest of the UK, average house prices remain around 50% cheaper than properties in Greater London and the fall in house prices has been less dramatic – around 1.2%. The average house price in the rest of the UK is now just over £304K.
It will be interesting to see what happens in September where usually we see a bit of a rebound in house prices. As we move into autumn we should be able to view the strength of the property market more clearly in the post-Brexit world. With the recent interest rate cut, mortgages will become even cheaper so, in theory, this should bring a boost to the market. Watch this space….