3rd
Aug 2018
As more and more private landlords are leaving the private rented sector, London house prices have been hit the hardest as they continue to drop as number of homes appearing on the market are increasing in the capital, which impacts on prices.
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ce Index highlights London as having its lowest annual price increase in May, a drop of 0.4% with the average property price of £478,853.
The existing political upheaval and uncertainty surrounding the Brexit outcome has affected the capital's housing market, with many BTL investors deciding against taking on any more properties; this has caused a significant drop in property sales throughout London.
The latest HM Land Registry's data on London's private rental properties shows that in March the number of house sale completions dropped by a staggering 28.6% down to 6,810, from the previous March's figure of 8,659.
Sam Mitchell the CEO of an online estate agents stated the property market is simply 'stuttering' and said: “London's property price malaise continues, with annual growth in negative territory again.
“More than anywhere else, the capital has suffered from the drop off in buy-to-let investors deserting the market as a result of punitive tax changes.”
London's average house price is deterring many potential first time buyers as they cannot afford the first step onto the housing ladder, causing a glut of homes on the market.
John Goodall, CEO and co-founder of a buy-to-let specialist, said: “House prices succumbed to an early summer slowdown in May, helping to provide a slight respite for those hoping to get a foot on the property ladder. However, the overall cost of living and outstandingly high deposit costs continue to prevent many aspiring homeowners from entering the market.
“More and more of the so called ‘Generation Rent’ have surrendered to the fact they may never own a home in their lifetime. As a result, the private rental sector is increasingly becoming a crucial part of the housing mix and needs to be supported now more than ever.
“Recent government initiatives to professionalise the buy-to-let market and improve tenancy conditions are certainly a step in the right direction, but investment in building more properties specifically designed to rent will help to ensure the cost of renting doesn’t hit unsustainable levels.”
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