Greater London remains the UK’s worst performing region
Home.co.uk yesterday released their Asking Price Index headlined ‘London Prices Fall as Supply Leaps in the East and South’
Doug Shephard Director at Home.co.uk said: “Whilst we should expect seasonal price declines at this time of year, it is clear that the UK property market is no longer in great shape.
“Brexit is not really to blame. The super low interest rates imposed by the Bank of England in the wake of the financial crisis acted like steroids on any regional market that still showed a flicker of life. Consequently, prices in the nation’s leading property market, Greater London, soared for almost seven years but 2016 saw this market hit the buffers. After many months of declining demand and rising supply, year-on-year growth in this region is now negative.
“The same symptoms of overvaluation are now evident in the South East and East of England. Home prices have gone beyond affordability limits, rental yields are consequently low and the number of new instructions is on the rise in both regions. Of the two, the South East is further down the road to price stagnation and looks set to hit the buffers first. Prices there have only risen 3.2% over the last twelve months. Meanwhile, the East of England is still showing considerable growth (10.6%) but rising supply and lack of affordability suggest that this may not be the case for much longer.
“It is arguable that these three regions together have served as the key growth engine for the UK property market (in fact, they constitute more than 40% of the housing stock and much more than that by value). Should the fate of the South East and East of England markets be to follow the pattern set by London, 2017 will be a difficult year and may even herald a very different chapter in the story of the UK property market”.
Read the home.co.uk Asking Price Index in full click here
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