- London house prices just keep on falling.
- In May 2018, property prices in the British capital fell for the fourth month running.
- It hit all-time-highs last summer, but has been slumping since then.
London house prices fell for the fourth month running in May wiping just over £2,000 off the value of the average home in the capital.
Prices in the capital dipped by 0.4 per cent to an average of £478,853 in the year to May, latest figures from the Land Registry reveal today.
They confirm that the property market has continued its slow decline from all-time highs reached last summer but remain at levels that are well out of reach of many young Londoners.
Property experts said that with continuing uncertainty over the Brexit negotiations and further interest rate rises expected over the coming months London prices are unlikely to resume their upward path soon.
However a full scale collapse is seen as unlikely.
Richard Snook, senior economist at consultants PwC, said: “Annual house price growth in London has now been negative since February 2018.
“Regional figures can be volatile from month-to-month but the figure supports an underlying weakness in the market, the latest figure for May shows that prices are 0.4 per cent lower than the same time last year.
“In our regional forecasts we predict price falls in London in 2018 and 2019 of 1.7 per cent and 0.2 per cent respectively.“
Meanwhile the official rate of inflation was unchanged in June at 2.4 per cent, well below City expectations.
The pound dropped more than a cent against the dollar immediately after the announcement.
Source: Business Insider UK