London house prices falling at fastest pace since GFC

By Leith van Onselen

From Bloomberg comes news that London’s house prices are falling at their fastest pace since the Global Financial Crisis:

London house prices are falling at the fastest pace since the depths of the recession almost a decade ago, with the capital’s most expensive areas seeing the biggest declines.

Average prices fell to 593,396 pounds ($820,000) in January, an annual decline of 2.6 percent, according to a report published by Acadata on Monday. That’s the most since August 2009.

The city will be the weakest performing market in the country over the next five years, said Lucian Cook, head of residential research at broker Savills Plc, as a decade of soaring prices means London’s more exposed to political and economic uncertainty, the prospect of interest rate increases and mortgage loan limits…

Weakness in prime property in the U.K. capital in recent years — partly due to tax changes — is rippling out to other locations in the city and around the Southeast. London prices fell 0.8 percent in January alone, according to Acadata…

London’s highest-priced boroughs were the biggest losers over the last year…

The below charts tell the story, with Academetrics – considered the most accurate index since it comprises all sales lodged with the UK Land Registry – showing that London’s house prices had fallen in the three months to January (latest available):

With London’s annual price growth also down 2.6% in the year to January:

The last time London house prices were falling this fast was in August 2009.

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Unconventional Economist

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