Nery Alaev writes about housing in the UK.
The latest data has shown that residential property prices in England and Wales edged upwards in November, with month-on-month growth of 0.1%
Prices in London have reversed since January.
The UK capital, London, saw the lowest growth in the country – a considerable contrast to summer, when it was the highest.
I’ve decided to investigate and conclude on the news.
London calling
In London, there were stark contrasts regarding pricing.
The index report, from the LSL/Acadata house price index, points to a significant drop in prices and transactions in prime central London property being a reason for the drop.
Four out of five of the most expensive areas in London saw prices fall in the last month, led by Westminster where prices fell by 3.5%.
Year-on-year prices in Hammersmith and Fulham, another one of the capital’s most exclusive districts, were down 13.2% In Westminster they fell by 12.1% and in up-and-coming Camden were down 10.4% The report adds that in the five highest-priced boroughs in London average prices have dropped £112,950 over the year.
Ironically, as luxury areas have struggled, ‘value areas’ have thrived.
In a ‘mirror image’ of the top of the market, the five cheapest boroughs in London include the top three house price performers. Prices in Bexley were are up 14.6%, in Barking and Dagenham up 14.4% and in Havering up 13.4%.
The index report also shows that overall transactions remain subdued, down by over 30% over the three months from August to October 2016, against the same period last year.
Professional comment
Commenting on the news, Richard Sexton, director of e.surv chartered surveyors, said:
“Transaction levels remain subdued, but are not far off previous years. Prices are still edging up.
Supply remains the big issue. The Chancellor has announced plans for 140,000 new homes as part of the Autumn Statement, but plans promised to boost supply will be in the housing white paper, postponed to January.
The uncertainty that’s so characterised this year looks set to continue a while longer.”
In conclusion, there’s a clear issue present with UK’s, not just London’s, house prices. It will be interesting to see what 2017 brings for the UK.
Nery Alaev
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.