Housing prices in London are falling at the fastest pace in nine years, according to Halifax, the largest mortgage lender in the UK.
London recession reduces the North-South housing prices
Prices in the capital decreased in January-March by 3.2% compared with the previous quarter, the sharpest decline since the financial crisis, according to regional data collected by IHS and the index published by Halifax, part of lloyds banking group.
London also recorded the sharpest annual fall in housing prices since the beginning of 2011. The value of real estate fell by 3.8% in the first quarter compared to a year ago, after a 0.7% annual decline in the fourth quarter. London prices have been falling on a quarterly and annual basis since the third quarter of 2017.
There was a small annual increase of 0.3% in prices in the South East of England in the beginning of the year and growth of 1.9% in the South-Western direction.
property prices in the UK
Prices rose strongly elsewhere in the country. East Midlands and Eastern England were registered the highest annual inflation rate of 7.3% and 7.2% respectively, with subsequent Scottish 6.7% and Yorkshire and the Humber at 6.1%.
Standardized the cost of houses in London amounted to £430,749 in the first quarter, the lowest since the end of 2015. The indicators are standardized in order to track the price of a “typical house”, giving values to certain attributes of the properties and their use for pricing.
The figure in the South-East was £337,776, an annual minimum.
These prices are still much higher than the average salary of £223,819. With the exception of London and the South-East, only in the South-East and East of England remain above the national average of £237,371 and £236,335 respectively.
Average housing prices are the lowest in Northern Ireland at £127,793, Scotland for £145,837, and in the North of England at £146,648.
regional housing prices
In the UK, housing prices stalled in the first quarter. Paul Smith, an analyst at markit Economics Director, said: “the muted performance of the housing market in the UK, especially in the South of England, the appears to reflect a General lack of appetite among households, currently for activities associated with major purchases in accordance with the overall pressure on real incomes in recent months.
“In the Union, with a common background of a British exit from the EU-related uncertainty, plus the likelihood is higher, though still historically low interest rates later this year, the market seems to be still in a subdued state in the foreseeable future.”
The figures came as surveyors British property gave their most pessimistic assessment of the housing market in the next five years.
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The Royal institution of chartered surveyors (rics) said that demand from buyers fell for the 12th straight month in March, new instructions from sellers fell for the seventh straight month, while prices were flat at a national level.
One surveyor, Whittome Toby Jackson-stops in London, told mark, the increase in customs duties and the British exit from the EU “kill the fluidity of the London market.”