London housing market is the weakest performing region for first time since 2009, with house prices down 0.6% year-on-year according to Nationwide
- Nationwide: London prices now falling
- Estate agent blames affordability problems, rate fears and Brexit
- Coming up: New UK growth figures
Jonathan Samuels, CEO of property lender, Octane Capital, reckons a correction to London prices was overdue.
“The London property market has been the victim of its own extraordinary success.
Prices in the capital rose to such a level that a correction was always on the cards.
Jeremy Leaf, a north London estate agent, says house prices in London are now falling because they rose beyond the reach of most people.
Plus, potential buyers are also cautious because the Bank of England may raise interest rates soon. Brexit doesn’t help, either.
The London market is struggling for mainly affordability reasons and it is only those sellers who recognise the changed market conditions that are doing deals.
‘Buyers and sellers are still nervous about prospects for the market in view of lack of perceived progress in Brexit negotiations and concerns about imminent rises in interest rates.’