Monday, 10 July 2017 11:16

A mid-year look at the London property market

At June 2017, the average value of London property was classed as £675,305 which is a figure that had decreased by 0.58% in comparison to the figure from 12 months previously. It was also a figure that had decreased by 0.83% on the figure from six months ago.

Whenever there is mention of a decrease or fall in the property market, there will be some concern or panic but on the whole, and considering the wide range of external factors, the status of the London property market in 2017 could be a lot worse than it is now.

Average price paid for property in London:

  • For the past 12 months - £607,112
  • For the past 6 months - £638,848
  • For the past 3 months - £647,909

You could look at these figures and form the opinion that the prices being paid for property in the capital are on the up. The average price paid over the past three months is £40,000 higher than the average price that has been paid over the past year. The fact that there are also positive ways to look at the market as well as the negative ways means that things aren’t as bad as some people would have you expect. It is also important that people are aware of the external factors that have influenced the property market in the past year and the past six months:

  • Investors and landlords dealing with changes to stamp duty on additional home purchases
  • Brexit and the ongoing uncertainty surrounding it
  • The snap call for the 2017 General Election
  • The uncertainty that has followed in the wake of the General Election

Any one of these factors may have been enough to impact on the market but when you have four separate factors all influencing the property market, and of course, the London property market is the most expensive and the one that people look to the most, it is inevitable that there will be some impact. While the current talk is of a slowdown in the London property market, when you compare this to the negative predictions being made a year ago, it is fair to say that the first half of2017 could have been a lot harder in the London property market.

Brexit has also afforded opportunities

While many property deals will have fallen by the wayside because of Brexit, the falling value of the £ has inspired many foreign investors to snap up property in the UK, with London being the prime focus. When you can get more for your money, it is only natural that people will make a purchase, so the predicted downfall in the London property market has likely been offset by more foreign investors coming into the country.

It is also important to remember that there is not enough housing in London. When the supply of property isn’t sufficient to meet demand, prices will be maintained at a higher level. Even if external factors lead to a fall in prices in the UK property market, the nature of the local market and demand for property in London means that the London market will likely remain as it is for the foreseeable future.

Yes, there may have been decreases in the London property market in the first half of 2017 but on the whole, there are reasons to be optimistic and positive about the London property market going forward from here.

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