London property prices have risen 1.1% over the past year, the slowest since 2012. There was however a 3.1% drop from the month before.
First price decline in Autumn since 2012
The case for concern comes from autumn being the season when the real estate market usually picks up. But 2017 was the first year there was a month-on-month decline since 2012.
Asking prices for London properties have fallen 3.2% over the past year. This, a stark contrast from the more than 20% growth in 2012. The priciest borough of Kensington and Chelsea saw the biggest decline of 10%. In Hammersmith and Fullham, prices fell 8%.
Lower property prices provides buyers with relief
There are plus sides to the situation however. Buyers are attracted by the lowered price tags and sales have risen 4.8% from the year ago. With a slowing economy following Brexit, stand-still pay increases and rising inflation, local buyers may welcome the change. Annual property price increases are now at half the rate of pay growth which gives buyers a bit of relief when it comes to coping with their finances.
The Bank of England has however suggested that they may increase interest rates for the first time in a decade. Should that happen, and if inflation rises at the same time, it would set buyers back a few steps.
This article was originally published as “Pace of London property prices slowest since 2012” by iProperty.com.sg
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