Just a decade after the Great Depression, the UK seems to be on the precipice of another economic crisis. Some signs of a possible downturn include the risks of Britain’s so-called shadow banking system. Another is the plummeting prices of homes in Greater London. A worrying trend that was last seen in the aftermath of the global financial crisis.
How did the most expensive place to buy a property in England end up becoming the worst-performing segment of the housing market?
Expensive Boroughs Cut Prices
The average price of a London home currently is £471,761 the lowest cost for a house in almost a decade. In fact, it was the only region where prices fell between July and September. House prices in even London’s most expensive boroughs, including Westminster, Hammersmith and Wandsworth, have already gone down.
A Slump in the High-End Central London Market
The top-end of the market was hit the hardest, though. Sub-prime properties, or those homes priced at around five million pounds, fell by 3.2% since 2016. Various factors are to blame for the trend: UKs decision to leave the European Union, higher property taxes and the Bank of England raising interest rates for the first time in ten years.
Because of the political and financial uncertainty, wealthy investors are choosing to opt out of big property investments for the time being.
Welcome News for Aspiring London Homeowners
The falling London home prices isn’t bad news for everyone, people who have been struggling to enter the capital’s housing market for several years welcome the development. Individuals hoping to move to the area may turn to specialists from theconveyancingnetwork.com, a company that offers reliable conveyancing services for sellers and investors.
After several years of unrelenting growth, house prices in London have fallen. While it could have negative consequences, it is a ray of hope for those seeking to get on the property ladder in the capital.