House prices in London are falling at the fastest rate since 2009, with prices falling as much as 15 percent over the past year.
While prices have surged in north-west England, the housing market is facing a steep decline in the capital. According to Your Move, the average home in Wandsworth fell by over £100,000 in value over the past year.
“This is the steepest annual rate of decline in London prices since August 2009, during the last housing slump, which was itself associated with the banking credit crisis of 2008-09,” said Your Move.
The fall in house prices is being seen across London, with house prices in Southwark falling from £666,000 to £585,000 in 12 months. In Islington, the average house price has fallen to £684,000 from £750,000.
Across the whole of London, average prices fell to £593,396, an annual decline of 2.6 percent.
The UK’s fastest-growing property market is now in the north-west of the country, where average prices in Blackburn have surged by 16.4 percent over the past year.
“The north-west’s major conurbations are also performing strongly; Greater Manchester prices are up 4.3 percent; in Merseyside, prices have increased by eight percent,” said Your Move.
“While there have been monthly increases in house prices for the last two months, the annual rate of growth has slowed in England and Wales. Although its beginnings were in London, this has now spread to the south-east and north-east too. All three have seen prices fall on an annual basis.”
The political uncertainty in the capital, along with slower economic growth and faster inflation since the EU referendum, has added to the decreasing house prices in the capital.
According to Lucian Cook, head of residential research at broker Savills, London will continue to be the worst performing in the housing market over the next five years.