London home prices hit six-year low in December

Weakness in prime areas in the city is driving the fall, which could continue well into 2017

TRD MIAMI /
Dec.December 12, 2016 01:30 PM

From the New York website: London home prices are falling down. According to U.K.-based property website Rightmove, home prices in England’s capital city have reached a six-year low in December.

Asking prices in the city have fallen 4.3 percent month-over-month to £ 616,160, or $775,500, Bloomberg reported. Inner London has dropped 6 percent, and Rightmove predicts prices in the city will decline 5 percent next year.

The report also found demand in London — which is measured by sales agreements — dropped 7.2 percent year-over-year.

Though average prices across inner-London dropped 2.6 percent, outer areas jumped 2.7 percent, which leveled out the average prices across the city. That disparity partly reflects the luxury end of the market, where an April tax increase on property investors and concerns about Brexit are weakening demand.

“Alongside the seasonal slowdown, the readjustment of prices to match buyers’ greater reticence continues, especially in more expensive inner London,” Rightmove’s director Miles Shipside told Bloomberg. “Buyers are being put off the really big-ticket purchases.”

In the quarter following the Brexit vote in June, London house prices fell 14 percent year-over-year.  The vote had raised New York City brokers’ hopes that international investors would flock to New York City[Bloomberg] — Miriam Hall  


Related Articles

arrow_forward_ios
Amsterdam's housing market is feeling the effect of Brexit (Credit: iStock)

The Brexit effect in Amsterdam: High home prices and ultra-competitive bidding wars

Frankfurt (Credit: Getty)

Frankfurt office complex hits the market amid bullish Brexit speculation

UK tightens scrutiny of real estate funds after heavy withdrawals ahead of Brexit

UK tightens scrutiny of real estate funds after heavy withdrawals ahead of Brexit

London loses its status as most expensive RE market in the UK

London loses its status as most expensive RE market in the UK

Chinese buyers in London are leaving institutional investors in the dust

Chinese buyers in London are leaving institutional investors in the dust

American banks aren’t lending to British property owners like they used to

American banks aren’t lending to British property owners like they used to

Down and out in New York — but not London

Down and out in New York — but not London

London’s housing market isn’t growing anymore. Here’s why

London’s housing market isn’t growing anymore. Here’s why

arrow_forward_ios
Loading...