Property Market in London is Changing
It has been revealed that the property market in London is changing, with Prime Central London seemingly suffering a burnout and new hotspots gathering more attention.
Areas in London that were previously considered an unfashionable area in the suburbs are staring to become hotspots. In research carried out by Garrington Property Finders is has been revealed that there are two eastern boroughs that have posted a 18% increase in house prices. While this occurs typically popular central areas have seen their property prices decrease. It would seem that after years of experiencing inflation in the double digits, a number of the prime boroughs seem to have burnt out.
Transaction across the capital as a whole fell in 2016. However, the drop was most significant in areas that some of the areas that have previously experienced a great deal of activity. For example, Hackney, the popular Hipster spot had previously seen property prices rise 117% since 2009, yet there was a reduction last year of 37%. Furthermore, the City of London has seen average prices more than double 106% since 2009 and now transactions in this market have nearly halved, experiencing a 46% decrease. The prices in the City of London has also fallen by 9% since 2015. Even notoriously decadent addresses such as Chelsea and Kensington has seen their property priced fall by 5% and sales slip by 24% last year.
In contrast to this, there are areas that have seen prices rise strongly. These boroughs are mainly located to the East of London. This increase in prices could be due to the planned Elizabeth Line which shall reduce the journey from Romford to central London in under 30 minutes. The stamp duty application to high-valued properties could have negatively impacted property in Central London.
It isn’t necessarily all bad news though, as the falling sales and prices could lead to investment from overseas by those who want to capitalize on the weak pound.
