Weak London market impacts on national performance

Weak London market impacts on national performance

For the time being, strong regional market performances outside of London and the South East are supporting the national average growth figures.

Growth in the Midlands is strong but not as ludicrous as was observed in Greater London back in 2014, with prices soaring by up to 20% year-on-year. For now, the rises look sustainable with prices increasing a few percentage points over and above the rate of inflation.

However, the drag effect of a weak London market means that the national average growth figure (3.2% YoY) weighs in at less than the rate of inflation as measured by the ONS (RPI ex housing) of 4.5%.

Meanwhile, the North West and Yorkshire continue to gain additional momentum and this will help boost the headline numbers going forward. The North East and Wales show improved confidence too, both displaying increased momentum but improvements are cautious and incremental thus far.

Overall, the UK property market is showing remarkable resilience and stability despite significant political uncertainty and a raft of costly disincentivising legislation.

In Oct 2016, the annualised rate of increase of home prices was 4.4%; today the same measure is 3.2%. The latest RPI (ex. housing) figure from the ONS is 4.5%

Greater London prices slide for a third consecutive month, by 0.2%, pushing the year-on-year change into negative territory (-0.7%).

However, thanks to strong regional growth, particularly in the Midlands and South West, the average price for England and Wales increased by 0.4% month-on-month and is up 3.2% year-on-year.

The East and West Midlands together continue to lead the regional growth tables with annualised gains of 6.6% and 5.8% respectively.

The West Midlands, North West and South West are now the most improved markets over the last 12 months as indicated by reduced Typical Time on Market figures.

By contrast, the markets that have slowed the most over the last 12 months are the South East, London and the East of England.

Typical Time on Market for England and Wales rises by two days to 89 days, two days less than in Oct 2016.

The total number of properties on the market in England and Wales remains down by 3% year-on-year (YoY).

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Latest Comments

Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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