New data shows outer London property falling in value
Average prices in outer London boroughs are seeing prices reduced by £10,000s as the market cools.
According to new data, a third of properties being sold nationwide have seen an average discount of £25,000. Surbiton and Kingston-upon-Thames are among the hardest hit, with average price drops of £38,000 and £78,600 respectively.
London property the worst affected
Bracknell, Weybridge and Twickenham are also among the boroughs where prices are rapidly falling.
This follows a general trend in recent months of a slowdown, and represents good news for London-based buyers. The data suggests that recent investors in outer London property seeking a return, however, are not so lucky.
Nationwide, London and the South East are seeing the greatest drops or lack of growth, with only 1% of surveyors reporting that average prices were rising in their area.
Is a housing market crash imminent?
Despite the recent falls, stock remains at the lowest levels seen for 30 years. Commentators argue that other parts of London remain good investments, with Woodford, Redbridge, Leytonstone and North East London generally expected to see significant price rises in the next few years.
Property in these areas has, or will have, good transport links into central London with the opening of Crossrail. A recent survey of landlords also found that 63% expected that HS2 would also have a positive impact on house values.
In contrast to the apparent anxiety of general consumers in regards to the impact of Brexit, the surveyed landlords also anticipated that Britain leaving the EU would have a positive affect on the London market.
Outside the Capital
Data published by an online estate agent suggests that the greatest % increases elsewhere in the country will be seen in Scotland, Wales and the Midlands.
Nottingham is predicted to see a 160% increase in value, having seen a 0.80% increase month on month since the referendum.
Glasgow, Edinburgh and Cardiff are all expected to see a 115% and 130% growth.
The predictions were based on monthly Land Registry data, factoring the current subdued increases in value, following Brexit-induced uncertainty.
The overall outlook
Russell Quirk, CEO of online agent eMoov, said in response to the new data that “many UK homeowners will be breathing a sigh of relief”. While “slower rates of growth are likely to persist”, Mr Quirk predicts that the market as a whole will continue to grow and that the “apocalyptic prophecy” of a housing price crash is unfounded.