A 15% drop in house prices? Estate agency chain reports

London property market update

One of UK’s largest estate agency chain Your Move stats show a 15% drop in home prices in the past 12 months in Wandsworth. Other London boroughs have seen similar decrease in pricing over the last year as well.
Since the start of this recision 10 years ago, house prices are falling the fastest this market has seen in the recent history.

On average, prices in the capital were down 2.6% in a year having fallen for the last three months in a row.

“This is the steepest annual rate of decline in London prices since August 2009, during the last housing slump, which was itself associated with the banking credit crisis of 2008-09,” Your Move said.

Slower economic growth, faster inflation and interest rate rises from the Bank of England have combined with negative media coverage of falling house process to make more consumers hold tight.

Offers for homes are often more than 10% below their original asking prices while new buyers registering with real-estate agents fell for an 11th month in February, according to the Royal Institution of Chartered Surveyors.

This trend has also begun to extend outside of London, with prices in the wider South East of England and Home Counties also experiencing some of the slowest growth in the country.

By comparison the cost of homes in the North West, South West and Wales has swelled by more than 3% in the last year, with Blackburn seeing prices rise over 16%.

 

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