‘Corrections’ in the south drag average property price growth to seven year low

House price growth hit a seven-year low in February, Land Registry figures show.

The latest Land Registry House Price Index shows property values grew 0.6% annually to £226,234, the lowest rate since September 2012 when prices were up 0.4%.

Prices also fell on a monthly basis in February by 0.8%.

Wales posted the strongest price growth during the month, up 4.1% annually to £159,559, while London saw the largest fall with a 3.8% decline in values to £459,800.

Average prices also fell for the first time in the south-east of England since October 2011 by 1.8% to £315,700.

The figures also show provisional estimates for sales volumes as of December – based on 85% of final registered transactions for the month – that suggest transactions fell by 2% in England, 8.2% in Scotland and 5.1% in Wales on an annual basis and increased by 4.3% in Northern Ireland.

Commenting on the data, Lucy Pendleton, founder director of independent estate agents James Pendleton, said: “The undeniable correction now at hand in London is the adjustment many have been waiting for.

“Falling prices in the capital are a sign that vendors have finally got the message. Sellers have needed a firm hand to guide them to more realistic prices recently.

“This is going to stoke demand and transaction volumes, which is what the market needs.”

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10 Comments

  1. James Wilson

    I have enjoyed reading the delusional “market is turning” emails from people like D&G in London recently.  Yeah right, market is “turning” … even further down!   This summer is going to see a bloodbath in London, and here is why:

    1.  The polls are going to continue to show a big percentage of vote going to Brexit Party.

    2.  People with money aren’t stupid, they will start to realise that with Brexit being killed that a General Election is likely in the Autumn, and that if Brexit Party polls 20% of vote (as I expect they will) that easily puts Corbyn in Number 10.

    3.  People will then realise that John Mcdonnell’s first budget is probably less than 6 months away.    And what will it contain?   Well we know for sure we will get a new Land Tax based on property value.   Before 2017 election this was speculated at 3% pa.   So that is £60k a year on your £2 million terrace in London.   And we know that top rate of tax will be much higher.  60%?  70%?   And then we strongly suspect that capital controls will be introduced on day one to stop the wealthy removing their money.   Plus things like a financial transactions tax which will absolutely murder much of the asset management industry.  What else?   More favourable treatment for BTL landlords?   errrrr. guess again!   Easier and kinder rules for non-doms and other money launderers?   errrrr.  guess again!

    4.  As per point 2, wealthy people aren’t stupid.   Once they realise, as I think they are right now, that everything in point 3 is now  probably only 6 months away they are going to head for the exits very hard.    That is why we saw an acceleration of price declines in London in yesterday’s data and that is why a short-term bloodbath awaits.

    Anyone buying in London right now is insane.  You will get a comparable property much cheaper in 12-24 months.

     

     

     

     

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    1. cyberduck46

      Not really a political animal but surely if the Brexit Party’s 20% of the vote results in them getting lots the seats in parliament then what passes into law will depend on which way their leader tells them to vote will it not? I’ve just checked and Farage used to be in the Conservative Party.

       

       

       

       

       

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