Central London has been hardest hit as elevated property prices deter purchasers says The BHB Group.
London property prices showed their biggest yearly decrease in nearly six years in February as elevated prices discouraged purchasers.
The average price tag in London dropped 0.4 percent in February from last year, which was the first yearly decrease since 2011. Although values increased 2.6% from the beginning of the year, it is the smallest monthly increase that’s the since 2009 in the worst part of the economic downturn..
London’s property market performed worse than the rest of the UK during 2016 after overextended affordability, UK’s decision to exit the EU bloc and tax escalations on financiers in the beginning of the year had a negative effect on demand.
“Countrywide, yearly price growth decelerated to its weakest in about four years in February, indicating that would-be purchasers are growing increasingly price-conscious as inflation eats away at actual incomes and worries cloud the overall outlook,” says Lee Donsen at The BHB Group.
In February, London asking prices fell 2.1 percent from the previous year, less than the 1.4 percent decrease that outer regions experienced. After a period of decreased activity over the holiday season, owners of Inner Boroughs homes listed their properties and boosted the overall average, causing the inner boroughs to outperform.
For Britain, asking prices increased by 2 percent which was the largest monthly gain in over a year. Although encouraging, it is still the least impressive February gain in almost 7 years. The increase was less than the average of 5 percent for February, making it the weakest since April 4 years ago.