London is the worst performing region down 1% for the year while house price grow across the country is subdued.
UK annual house price growth at 2.2% is stable but subdued and property values at £211,625 according to the Nationwide house price index.
London the worst performing region -1% down and Southern English regions are growing at the slowest rate since 2012.
This is welcome news for first time buyers in the capital as they would require lower deposits or higher earnings to purchase their first home.
Robert Gardner Nationwide’s Chief Economist said, consumer confidence has remained subdued with the ongoing squeeze on household finances as wage growth continues to lag behind increases in living costs.
House prices likely to be supported
Even with subdued economic activity and homeowners on tight budgets the historically low unemployment, highly competitive mortgage rates and lack of properties is likely to support house prices.
Nationwide expects house prices to be essentially flat with a marginal gain of about 1% during the course of 2018.
Regions in the North of England have recorded the fourth quarter in a row where house price growth has exceeded that in the South.
Northern Ireland has the strongest growth of 7.9% over the year although average property values are £137,965 and 38% below 2007 levels.
Wales also has seen house price growth rising from 3.3% to 6.1% year-on-year and the highest since 2014 compared to England with an average rise of only 1.9% with average property values of £257,417.
Home movers wanting to trade up when prices are rising will find their next property is more expensive which means they need a larger deposit or mortgage.
Home ownership declines over decade
The rates of home ownership has reduced over the past decade for all English regions with the biggest fall in London from 57% to 47%.
In contrast, robust growth in the private rental sector for London has seen the number of people renting increased to 30% of all households.
This is likely due to the significant rise in property values since 2007 with prices in London now 57% higher than 2007 levels and average prices of £473,776.
With higher house prices in the capital buy-to-let landlords will look to outer London for affordable properties to help improve rental yields.
The rise in house prices for London allows the older equity release mortgage buyer to access the wealth in their property to repay an interest only mortgage or pay for care at home.
For remortgage buyers higher prices give them an opportunity to release capital which they can use to improve their home.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to improve your quality of life or even gift to a family member or friend.
Learn more by using the equity release calculator, mortgage monthly cost calculators, and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
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