London property prices drop, but snap general election should have very little impact on the overall market
According to Rightmove’s latest house price index, the average price of London property has dropped by nearly £10,000 over the past year, the biggest fall since May 2009.
Whilst on the main the housing market is showing resilience, the decline can be almost entirely attributed to a steep drop in the price of high-end properties and those in inner London, with five bedroom houses taking the biggest hit.
The annual decline averaged at 7.3 per cent, while a dramatic monthly fall of 11.9 per cent in April brought the average price of properties at the top of the ladder down to £1.49m from £1.69m in March.
The overall average asking price of a property in London is now £649,772, which is £10,000 below the all-time high.
London, with now an overall average asking price of a property at £649,772, is however the only region that didn’t see house prices moving up this month. Every other part of Britain recorded an increase.
Rightmove director and housing market analyst Miles Shipside comments: “The more discretionary upper end of the market is having to tempt buyers with cheaper asking prices, off-setting the higher purchase taxes in this sector.”
The Rightmove index concluded by saying that the snap general election should have very little impact on the overall market, with Mr Shipside adding: “Any slowdown in activity will be counterbalanced by the market’s current fast pace. Indeed, in locations where choice of suitable property is limited hesitation could mean losing out to others who still decide to act.”
Beavis Morgan – Specialist property advisers
At Beavis Morgan, we have extensive experience in advising individuals and businesses on all aspects of the property market. We act for a broad range of property investors and developers who actively need advice on how to best structure their property deals, both to ring-fence and protect their property assets, as well as to minimise the tax arising from their business operations.
For further information about how we can help you with your property ambitions, contact Steve Govey or your usual Beavis Morgan Partner.
Further reading: Landlords make their move to avoid tax increase and maintain profit
