London home prices post largest drop in nearly 8 years

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

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

London’s One Hyde Park

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

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

The Daily Digest - Tuesday

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate

Racial inequality in homeownership across US is sharpest in New York: report

Governor Andrew Cuomo and Senator James Skoufis (Credit: Getty Images, NY Senate)

Owners of some residential properties can’t hide behind
LLCs anymore

Philip Seymour Hoffman and 1 Sheridan Square (Credit: Getty Images and Google Maps)

Philip Seymour Hoffman’s old West Village pad sells for $2.57M