House prices in London have now been flat or falling for a longer period than was seen during the economic downturn of 2008 and 2009, according to an official report.
Property prices in the capital have failed to grow year on year for 16 months in a row, with the latest figures showing a 2.7% annual decrease in June, a report from the Office for National Statistics (ONS), Land Registry and other bodies shows.
This compares with 15 months of prices falling over the year in London during the economic downturn of 2008 and 2009.
However, prices in the capital recorded sharper falls during the 2008 and 2009 period than has been the case more recently, the report said.
The average London house price in June was £467,000, compared with £230,000 across the UK generally.
Across the UK, house prices increased by 0.9% annually in June – a figure unchanged from May.
UK house price growth has slowed over the past three years – mainly driven by parts of southern and eastern England.
Average UK house prices peaked at £232,000 in August 2018.
In June, average house prices increased year on year by 4.4% in Wales to reach £164,000, by 1.3% in Scotland to £152,000 and by 0.7% in England to £247,000.
In Northern Ireland the average house price is £137,000 – 3.5% higher than a year earlier.
Within England, the Midlands is showing the strongest house price growth, with prices up by 3.2% year on year in the East Midlands and by 2.6% in the West Midlands.
Howard Archer, chief economic adviser at the EY Item Club said: “We believe, with Brexit due to occur on October 31 – and it currently very unclear what will happen then – uncertainty will weigh down on the economy over the next few months at least and hamper the housing market.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “It is steady as she goes for the housing market, which is no mean feat given that it is the summer months when things traditionally get quieter and the backdrop of Brexit uncertainty.
“London is still creating a drag on average house price growth, with prices falling 2.7% over the year to June.
“However, this was an improvement on the May fall of 3.1%, suggesting price falls could be slowing and the market stabilising.”
Referring to the London market, Jonathan Hopper, managing director of Garrington Property Finders, said: “Prices in the capital are now falling more slowly, but the direction of travel remains clear.
“After 16 consecutive months of softening, sliding, and occasionally dropping, prices, the correction is still under way.”
By Vicky Shaw
Source: Yahoo Finance UK