London home prices just posted their first annual decrease in almost a decade, and the effects can already be seen in UK housing. Price growth in London decreased 1% year-over-year in February, causing UK price growth to dip 0.3%.
Despite the recent slump in London’s housing market, annual price growth is still trending upwards across the UK. The average UK home is £9,000 more expensive than it was a year ago, and prices in London have grown by about 60% in the past seven years.
- UK price growth decreased to 4.4% in February, down 0.3% from a year earlier
- The average UK home sold for £225,000, about £9,000 more expensive than last year
- Housing affordability will continue to worsen because home prices are growing much faster than average earnings
House price growth has fallen, dragged down by the first annual fall in London house prices since 2009, official statistics have revealed.
London drove down the overall rate of house price growth with an annual drop of 1pc in the year to February.
The official data comes after surveys also reported a fall in London prices. According to research from the Royal Institution of Chartered Surveyors (RICS), a net balance of 47pc surveyors had seen prices in the city fall. Other declines were also found in the north east of England and East Anglia.
Lindsay Judge of the Resolution Foundation said: “This isn’t yet a reprieve for Londoners, given that the cost of buying in the capital has grown by 60pc since April 2011 while average earnings have flat-lined. With prices continuing to grow in other parts of the country, housing affordability across the nation is likely to remain a critical issue for a long time yet.”
In the year ahead, Thomas Fischer of PwC believes current market conditions look set to stay. House price inflation will be around 4pc in 2018, he said.
View the original article at The Telegraph UK