Friday 25 May 2018

Brexit knocks £10k off London houses

House prices in London are continuing to fall. Stock picture
House prices in London are continuing to fall. Stock picture

Jill Ward

Home prices in London are continuing to fall, prolonging a slump that's seen the average property in the English capital lose almost 2pc its value over the past year, new surveys show.

The UK market is "starkly divided," according to Acadata, a data provider, which said that values in London slid for a third month in February but are rising in other regions apart from the southeast.

A similar picture emerged in figures from property-website operator Rightmove, with average prices climbing to a new record of £305,732 in April, despite a drop in London.

"Home buyers are seeing average asking prices at their highest-ever level, with upwards price pressure getting stronger the further away you move from London," said Rightmove director Miles Shipside.

"However, higher prices stretch buyers' willingness to pay or ability to afford them."

Years of rampant home-price inflation and a shortage of properties for sale has pushed ownership out of reach for many, with Acadata saying that six regions set new price records recently.

Transactions were 19pc lower than usual for this time of year, which can be partly explained by changes in stamp duty.

House prices across the UK rose just 0.4pc in April from a month earlier, the lowest at this time of year since 2008, the Rightmove report showed.

They fell 0.6pc in London, where the average property is now over £10,000 lower than a year ago.

Uncertainty surrounding Britain's exit from the European Union has weighed especially on the London housing market.

Those declines are no longer concentrated in the most expensive areas of the capital, the Acadata report showed. (Bloomberg)

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business