Brexit puts brakes on rise in property values
Property prices in London have shot up by 55% since June 2011 to £540,440, research by Lloyds Bank shows.
The findings also reveal that home movers in the capital put down the largest deposit towards the purchase of their next home. That figure of £192,133 is four and a half times higher than the average deposit of £42,310 paid by property buyers in Northern Ireland.
In the UK as a whole, the number of home movers has increased by 9% in the first six months of the year compared with the same period in 2015.
Meanwhile, the number of people moving up the property ladder has increased from 160,900 last year to 174,700 – the highest level since 2008.
Rightmove’s August House Price Index, however, delivers better news for property buyers in Newington Green.
It shows London house prices fell 2.6% in the last month, as Brexit uncertainty and a summer slowdown hit the capital’s property market.
Prices of properties being put up for sale were down £16,301, according to the property portal’s data.
Rightmove housing market analyst Miles Shipside comments:
“While it is usual for sellers in the capital who come to market in the summer holiday season to price more cheaply, there have only been two larger drops at this time of year since 2010.”
More expensive homes are most vulnerable to the summer slowdown, he adds.
The European Union referendum meant an earlier start to the summer lull, as buyers hit the pause button ahead of the June poll, but the result has since encouraged “hundreds and thousands” of house hunters to search for potential bargains.
The recent interest rate cut could prove to be a further “confidence boost” and the pound’s weakness will strengthen demand from some overseas investors, according to Rightmove.
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