Housing prices in London fell in March, in annual terms inflation fell to minus 0.7 percent, the sharpest drop since 2009, according to official land registry figures for March.
Falls in contrast to the capital, further growth in the rest of the UK, and the General level of inflation in housing prices will be 4.2%, with the greatest growth in Scotland, 6.7%.
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Experts in the field of real estate in London said that buyers “smelling blood in the water”, while sellers are forced to lower prices dramatically to provide sales.
Jonathan Hopper of Garrington property finders, said: “London is to pay too high a price for his stellar run of price increases and the correction is currently underway in several districts of the capital.”
The ONS, which is the index of housing prices based on data from land registry said that prices in London fell after the EU referendum in June 2016.
“This is the lowest annual increase in London since September 2009 when it was negative 3.2%. London showed a General deceleration in its annual growth rate from mid-2016. The second lowest annual growth was in the North-East, where prices rose 2.1% in the year to March 2018.”
The ONS said the average house price in the UK in March was $ 224,000, £500 less than a month ago, but £9,000 higher than in March 2017.
It is noteworthy that 4.2% yoy inflation figures by the ONS substantially in excess of the indicators from the indices developed by the Halifax and nationwide, which are 2.2% and 2.1%, respectively.
Data the land registry is regarded as “back” as it reflects the actual prices, and then was compared with indicators from creditors who are trying to capture the rate at the time of sale.
Separate figures from the UK Treasury show that the activity of transactions has decreased over the past year. The number of first-time buyers fell by 3%, while the number of housing units decreased by 4.3% in the first quarter of 2018, compared to the same period a year earlier.
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However, Sam Mitchell Agency housesimple.com property said that the picture outside London is very different.
“For many years we talked about North-South, with housing prices in Northern labour kept pace with the rapid increase in prices in the South. But this trend was turned on the head,” Mitchell said.
“Compare London to Liverpool. While in London, housing prices in the negative zone of growth, in Liverpool, on average, prices increased by 12.5% over the same period, making it one of the strongest real estate markets in the UK right now. Where affordability is a serious problem in southern England, North-a great option, especially for families looking for large homes.”
Economists expect inflation in housing prices will be about 2% in 2018, with some hatching in only a modest increase in 2019.
Howard Archer, chief economic adviser to the ey club, said: “latest data and research findings largely point to the weak housing market, as it is under pressure to continue-companies in the purchasing power of the population, a lack of confidence and fears of further gradual Bank of England rate hike in November, the first increase since 2007.
“We expect that the housing prices gets for 2018 will be limited to a modest 2%. At this stage, we expect that prices will rise by no more than 3% in 2019”.