Which london boroughs have property prices fallen the most & why .
Two fifths of London postcodes have registered annual property price falls over the past year, with growth in the capital slowing to 1%, down from 4.3% in February 2017.
While regional cities such as Edinburgh and Liverpool have seen their respective property markets flourish, with growth more than 7% a year, London has recorded single digit price falls, most notably in central boroughs.
The number of London postcodes registering negative house price growth (currently 42%) is now at its highest since the financial crisis.
The figures, from the latest Hometrack house price index, reveal that 15 of 46 local authorities in London have seen house prices slip over the past year, with the greatest falls seen in the City of London (7.9%), Camden (1.9%), Southwark (1.8%), Islington (1.4%) and Wandsworth (1.2%).
Hometrack blamed the dip on numerous tax changes which have discouraged overseas and domestic buy-to-let investors, as well as stretched affordability levels for homeowners and first-time buyers that have been compounded by Brexit uncertainty.
Prices in Cambridge and Aberdeen have also tumbled, by 1.5% and 7.7%, respectively, the data showed.
By comparison, house price growth outside southern England and parts of Scotland remains robust. Edinburgh, Liverpool, Leicester, Birmingham and Manchester have all seen growth more than 7% since February 2017.
Based on current trends, Hometrack said it expects annual house price growth to shift into negative territory by the middle of 2018.
“We expect the number of markets with falling house prices to grow further in the coming months as buyers accept lower prices to achieve sales. The net result will be a negative rate of headline price growth for London by the middle of 2018,” its report stated.
Richard Donnell of Hometrack, said: “The weakness in London’s housing market has been building since 2015… sales volumes are first to be hit when demand weakens and housing turnover across London is down 17% since 2014. Sales prices are next to follow but with few forced sellers the level of price falls remains low.”
Mr Donnell said, however, that because average London house prices have grown by 86% since 2009, there was still a “sizeable equity buffer to absorb any price falls”.
According to a separate house price index by Nationwide earlier this year, annual property growth in Britain has slowed to 2.2%, with Robert Gardner, the building society’s chief economist, saying that while month-to-month changes can be volatile, the slowdown is “consistent with signs of softening in the household sector in recent months”.
Mr Gardner said Brexit developments and the state of the wider economy will be key to the housing market’s performance in the year ahead.
“We continue to expect the UK economy to grow at modest pace, with annual growth of 1% to 1.5% in 2018 and 2019.”
In December, the Royal Institution of Chartered Surveyors said that it expected house price growth to “grind to a halt in 2018”, amid a toxic cocktail of low levels of sales and homes on the market, as well as cautious buyers.