London house price growth increases to 2.8%pa

Hometrack's UK Cities House Price Index - July 2017 reports the steep slowdown in London house price inflation has bottomed out with an increase in the annual rate of growth to 2.8%. Small price gains are being recorded against the backdrop of lower turnover.

Prices were unchanged over 2016H2 in the wake of the Brexit vote, while over the last 5 months the index has recorded positive growth, albeit at a relatively low level.

This stabilisation in the rate of London house price growth is down to two main factors; 1) lower transaction volumes and 2) an absence of forced sellers. Housing turnover across London has fallen by 17% since 2015 as affordability pressures and recent policy changes impact demand. In the absence of a jump in borrowing costs, or other adverse economic factors, sellers are slow to accept downward adjustments in prices in the face of weaker, price sensitive demand..

For more information please read:

https://www.hometrack.com/uk/insight/uk-cities-house-price-index/july-2017-cities-index/?utm_source=ea-cities&utm_medium=trade-email