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Property prices fell by 4.7 per cent nationally during the fourth quarter of 2017 according to London Central Portfolio.
The decline marked the steepest fall since 2009, according to the research. House prices in the capital have fallen for three consecutive months. A 1 per cent decline was noted in October, with a 2.4 per cent decline in November and a 1.4 per cent drop in December.
In their newly launched LCPAca Residential Index, London Central Portfolio found that just 12.6 per cent of properties sold in England and Wales were new builds. This is far fewer than the average of 17 per cent found in Greater London, whilst Prime Central London saw 15.2 per cent of properties sold as new builds.
However, despite the decline as 2017 drew to a close, annual growth remained at 3.3 per cent.
Concerns have been voiced that the decline noted in London investment property prices has been exacerbated by tax changes and the new restrictions on borrowing. This sentiment has been voiced by several landlord groups in the past, who are concerned that stifling the property market could lead to less choice for tenants as landlords are forced to sell up for financial reasons.
Chief executive of London Central Portfolio, Naomi Heaton, spoke out about the research, saying: ‘Having neither benefited from the bounce in prices seen in London in 2013/14, nor suffered greatly from the tax changes impacting the capital, average price growth in England and Wales has been steady over the past few years. However, the last three months of 2017 have seen successive price falls.’
She continued: ‘As with Greater London, weaker sentiment and restrictions on borrowing have begun to impact buyers in England and Wales. There is a serious need to address the affordability issues within the sector and support the building of more low-cost housing outside London.’