London home prices post largest drop in nearly 8 years

Average asking price fell y-o-y in April to $813K

New York /
Apr.April 24, 2017 09:00 AM

London home prices saw their biggest drop in April in almost eight years, as the capital continues to underperform compared to the rest of the country.

The average asking price in the city fell 1.5 percent year-over-year in April to $813,000, Bloomberg News reported. That was the biggest drop since May 2009. As a whole, the U.K. saw prices rise 1.1 percent.

The city’s housing market has been lagging behind the rest of the country since 2016, pushed down by unaffordable prices, the Brexit vote and tax increases on investors, according to Bloomberg.

The top end of the market is feeling the pinch, as more expensive homes near the city’s inner neighborhoods saw prices decline 4.2 percent on the year, while prices in the less expensive outer suburbs were up 1.7 percent.

“While the rest of the country enjoys a spring surge with most regions seeing a price boom and new price records, some parts of the London market are still re-adjusting,” said Miles Shipside, director of the real estate website Rightmove Plc. “The more discretionary upper end of the market is having to tempt buyers with cheaper asking prices, offsetting the higher purchase taxes.”

Last month, the share of London sellers slashing prices grew in 31 of London’s 33 boroughs. [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
John Catsimatidis and 670 Pacific Street (Getty, StreetEasy)
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
Catsimatidis notches win for landlords in 421a suit; tenants vow to appeal
(iStock)
Overbooked Hamptons hotels spark bidding wars
Overbooked Hamptons hotels spark bidding wars
Photo illustration of Nest Seekers' Dylan Eckardt and the Amagansett property (iStock, Nest Seekers)
Tall tale: Nest Seekers’ “$50M” Amagansett sale was actually $16.5M
Tall tale: Nest Seekers’ “$50M” Amagansett sale was actually $16.5M
Robert Herjavec and One57 (Getty, Beyond My Ken/Wikimedia)
Robert Herjavec buys One57 condo at $13M discount
Robert Herjavec buys One57 condo at $13M discount
Realtors no longer heart “love letters” to sellers
Realtors no longer ♡ “love letters” to sellers
Realtors no longer ♡ “love letters” to sellers
1 Swan Landing
5 Gatsby-esque homes fit for the Roaring 2020s
5 Gatsby-esque homes fit for the Roaring 2020s
Bidding wars occurred in 35 percent of North Fork home sales. (iStock)
Bidding wars drive Long Island home prices to new highs
Bidding wars drive Long Island home prices to new highs
Home sales rise in June, snapping four-month downward streak
Home sales rise in June, snapping four-month downward streak
Home sales rise in June, snapping four-month downward streak
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...