House prices in England are dragged lower after the biggest fall in London prices since the financial crisis down -4.4% annually.
Research from the Office of National Statistics (ONS) shows house prices in London have reduced by -4.4% over the year to May 2019 dragging down England with growth of only 0.1% over the same period.
This is the biggest fall in property values since the financial crisis with average prices of £457,471 reducing by -£21,055 compared to the UK where house prices increased 1.2% annually with average prices now £229,431.
The reduction in house prices in London is good news for first time buyers as they would require a lower deposit or smaller mortgage to get on the property ladder.
House price falls for London boroughs
Of the 32 boroughs in London only six experienced a rise in house prices with Haringey up 6.1% or £33,567 over the year with average values of £583,850 followed by Hackney up 5.7% and vales of £571,462.
The following table from the ONS shows average house prices and annual change for London homeowners to April 2019.
| Borough | House Price | Annual change |
|---|---|---|
| Barnet | £481,821 | -9.6% |
| City of London | £729,967 | -8.3% |
| Southwark | £475,319 | -5.8% |
| Kingston on Thames | £473,184 | -5.6% |
| Islington | £615,316 | -5.5% |
| Harrow | £437,793 | -5.4% |
| Tower Hamlets | £440,166 | -5.2% |
| Croydon | £353,194 | -4.7% |
| Wandsworth | £565,377 | -4.6% |
| Lambeth | £495,609 | -4.5% |
Barnet had the largest decline of -9.6% or -£51,267 for the year to May 2019 with an average property value of £481,821 followed by the City of London down by -8.3% or -£66,432 and values of £729,967.
According to the Royal Institution of Chartered Surveyors (Rics) demand and supply remaining in negative territory and the Bank of England stated sentiment continued to weaken with Brexit related uncertainty.
With a slowing property market and falling prices in London, it may be easier for remortgage buyers to stay in your existing home if you can and avoid the cost of moving.
Even with lower house prices in London, the equity release buyer can access money with a lifetime mortgage and use this to buy a more expensive home or reduce inheritance tax owed by your beneficiaries.
North West is fastest growing region
The North West of England is the fastest growing region with house price growth of 3.4% to May 2019 compared to 3.3% annually for the previous month and average property values of £164,261.
Wales was next rising 3.0% for the year with average property values of £159,428 followed by Scotland up 2.8% and West Midlands higher by 2.7%.
Across the UK flats reduced in value by -1.3% annually and for buy-to-let investors the lower house prices means they need a smaller deposit or mortgage and rental yields after interest payments would increase.
The number of sales transactions for residential properties during May 2019 were 89,810 and this was -11.3% lower than a year ago.
The lack of suitable properties on the market at an affordable price for home movers means they will remain in their current home and saving for a bigger deposit.
What are your next steps?
Call our LCM mortgage brokers if you are a buy-to-let landlord with a property, remortgaging and want the best mortgage deal, buying your first home or you are planning to move home.
For equity release buyers our London City Mortgage advisers can recommend lifetime mortgages allowing you to receive cash from your home to spend on anything such as improve your quality of life or pay for care at home.
Learn more by using the mortgage cost calculators, property value tracker chart and equity release calculator. Start with a free mortgage quote or call us and we can take your details.
