London House Prices

London prices have always been inflated, beyond the reach of average buyers, while many regions in Bristol and Manchester are a seller market, indicating more buyers than sellers. At the same time, London remains one of the most inflated regions, where demand has fallen approximately 16 per cent since Brexit.

Halifax reported a sharp jump in housing prices in April. The report states the mortgage lenders are claiming a price gain by 5 per cent in 3 months to April – compared to the same period last year, and the growth was the fastest since 2017, though the economists were expecting the growth to be at 4.5 per cent.

The highest growth was seen in London, where there was an increase in sales volume in the capital city of pricier new homes. However, Halifax said the supply and demand remained almost subdued, and Nationwide estimated the gains to be at 0.9 per cent, while Rightmove said the online asking price fell 0.1 per cent.

Land Registry reported a growth of 0.6 per cent. The UK home price is now at an average of £236,619, and economists believe the markets are still remarkably strong.

London and South East Prices Remain Volatile

The house price in London and South East were most affected by the recent trends where the Brexit unpredictability created volatility in the market. However, certain specified regions show price gains, mostly due to supply shortages and increasing rents.

Overall the total number of transactions has been limited, where the year-on-year growth figures remain static, supported by the lack of available properties. 

RICS claims the price growth was the weakest in 8 years, although the properties sold fastest in April since 2016. In addition, British lenders claim they sanctioned fewer mortgages since December 2017 in March, and consumer borrowing declined.

Overall, the market has been hit by the uncertainty over the Brexit extension to October 31, and the price continues to gain. The current data shows that the young generation must save money for more than ten years to get a house deposit and mortgage at a lower rate.

In most regions, the market has been hit by unaffordability, tax changes, and buy-to-let restrictions.

Overseas Buying Trends

The overseas investors say the demand for good homes exists, and the ability of the rich buyers to pay for the best homes exists, which can also allow the investors to buy new homes in regional cities.

The regions like Manchester are offering several apartments and flats for investment where one can get the highest returns due to the availability of occupants.

Experts suggest investors buy in northern cities for higher returns compared to the capital city facing unaffordability issues, mostly due to the imbalance in supply-demand, resulting in the freezing of property chains and limiting options for first-time home buyers.

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