London's Housing Slowdown Holds Back U.K. Property-Price Gainsby
Prices grow 0.4 percent, as demand bounces back from Brexit
Homes in capital’s exclusive boroughs lose 8.6 percent on year
London’s priciest neighborhoods are weighing down house-price growth in the U.K., according to Acadata and LSL Property Services Plc.
The average value of a British home rose 3 percent in the year to October, the groups said in a report published on Saturday. Excluding London and the southeast, average prices rose 3.6 percent. From a month earlier, national prices gained 0.4 percent in October to 294,351 pounds ($366,000).
London’s property market has been hardest hit by the U.K.’s decision to leave the European Union and the imposition of a stamp duty surcharge on investment properties in April. Price growth is at its lowest since February 2012, while another report on Thursday highlighted that home values in the capital had fallen for eight consecutive months. Prices outside of London have continued to rise however, supported by an imbalance between supply and demand.
“In the short-to-medium term, the outlook for the housing market remains modest,” Acadata chairman Peter Williams and housing analyst John Tindale said in the report. “In the longer term, the strength of the underlying demand/supply imbalance comes through more strongly.”
In the capital’s five most expensive boroughs -- including the City of London, Kensington and Chelsea, and Camden -- prices on the year fell 8.6 percent, equivalent to 108,050 pounds. Properties in the East of England have seen the biggest annual rises, growing at 7 percent, while London has fallen to eighth having been on top as recently as April.