Greater London house prices have risen 15.6 per cent in the past year according to LSL but values in some of the capital's most expensive addresses are now firmly on their way down.
Four of the top five boroughs with the highest average house value now have average prices that are actually below their peaks of earlier this year. In three of the four, prices are five per cent or more below peak.
Meamwhile LSL's national house price index saw an increase of 9.6 per cent in the past year - although this collapses to only 5.2 per cent once London and south east England's increases are removed from the equation.
LSL director David Newnes says the figures make the case for Help To Buy in an era when there are new affordability regulations and stress tests tightening mortgage approvals.
Help to Buy remains a crucial link in bolstering first-time buyer demand. HTB may not make a difference in London, but it is a vital aid for aspiring homebuyers in parts of the country where prices are still regaining ground lost during the recession. Places like Lancashire and York are still experiencing annual growth below one per cent" he says.
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Comments
With a name like McDonald it sounds like you're already flipping burgers. :)
What happens when something gets cheaper People buy more of it. So if house prices fall, it's quids in for EAs then. Or dont you understand such a basic concept
Oh, got to feel sorry for the EA's really. When the whole things come crashing down most will barely be able to qualify for work in Aldi. Burtons will also be issuing profit warnings as the sale of 241 suits plummet.
Shame.
I'm waiting for significant price reductions. Prices need to go down by about 40% for them to make sense relative to local salaraies. My family will live with my parents until that happens. If it doesnt, we will not buy. Simple.
Im sure this is just the beginning of the long long long overdue London correction. ANother 40%-50% and maybe will think of jumping in the market again.
Does this surprise anyone Not everyone who lives in London is an oil tycoon who can afford the ridiculous prices that have been rising constantly. Normal people need places to live too. If people can't afford it, they wont buy it and you'll have to reduce prices. Simple as.
Reduce the price and you will still sell. EAs can make money in both bull and bear markets ....