Call for your free quote 0800 955 0058

London house price growth slows sharply for the month to June

Uncertainty with the EU Referendum has seen London house prices stall increasing by 0.2% for the month to June down from 1.5%, says ONS.



The Office of National Statistics (ONS) report shows a slowdown in house price inflation for London while Northern Ireland and Scotland have benefitted from strong growth.

House price growth for Northern Ireland was 3.8% for the month to June compared to a decrease of 1.0% last month and Scotland has a strong monthly rise of 2.7%.

Although over the last year London has maintained a double digit increase of 12.6% there are signs things are changing.

The London market supported from buy-to-let landlords where sales declined after the new stamp duty tax was introduced in April 2016 and overseas investors are cautious to buy with uncertainty over the Brexit vote.

Growth outside of Greater London

Many areas outside of Greater London continue to see house price growth with East of England higher by 1.3% over a month and 14.3% higher over the year.

Other areas such as Yorkshire and The Humber have bounced back with a monthly rise of 1.2% after a fall the previous month of 0.2% and Wales house price growth is 1.2% compared to 0.9% last month.

For England annual growth is averaging 9.3% and for first time buyers this would mean they would require a larger deposit or higher earnings to purchase their first home.

Average property values and annual change for June 2016 from the ONS are shown below.
Area Annual Changes
Property Values
London 12.6% £472,204
South East 12.3% £309,149
East of England 14.3% £270,029
South West 8.0% £229,383
England 9.3% £226,807
West Midlands 6.4% £174,998
East Midlands 7.9% £171,462
Yorks and the Humber 5.5% £149,706
North West 6.6% £148,320
Wales 4.9% £145,238
Scoltand 4.6% £143,282
North East 6.6% £124,470
Northern Ireland 7.8% £123,241
Across the country the highest rise in prices by type of property is for flats up 9.8% over the year with an average price at £193,758 compared to a terraced home up 8.7% worth £174,495.

Semi-detached homes increased by 8.5% and are now worth £200,789 and a detached home has increased the least at 8.0% although worth the most at £318,945.

Older homeowners have greater value in their homes and the equity release mortgage buyer can access money using a lifetime mortgage to maintain their lifestyle, consolidate debts or even buy a more expensive home.

Top ten London boroughs

Even though Greater London is slowing, within the capital there is some strong performance in house price growth as first time buyers and home movers look for value in up and coming areas.

The leading boroughs in London all increased by over 18% over the year to May 2016 with Waltham Forest the highest with 22.1% and house price of £418,146.

Average house prices and annual change for June 2016 from the ONS are shown below.
London Borough House Prices
Annual Changes
Newham £355,950 21.4%
Waltham Forest £422,049 20.3%
Croydon £360,845 20.3%
Havering £340,162 19.5%
Bexley £319,307 19.4%
Barking and Dagenham £271,584 19.3%
Redbridge £401,199 19.4%
Haringey £555,638 18.5%
Enfield £386,182 17.5%
Hillingdon £404,502 17.1%
The average price of a London property is £472,204 and the entire top ten other than Haringey are significantly below this level.

For remortgage buyers the rise may allow them to release capital to improve their home such as an extension, new kitchen or bathroom which could increase the value of their home.

Some areas in the capital have decreased over the last year with Hammersmith and Fulham 3.2% or £24,339 lower and Kensington And Chelsea by 6.2% or £80,653 lower.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.

Learn more by using the mortgage monthly cost calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.

Latest mortgage news


29 Sep 2017

London house prices fall for first time in eight years

House prices in London are at £471,761 and negative for the first time in eights years with the weakest performance in the UK since 2005.

28 Sep 2017

New Build house prices rise 17% with support from Help to Buy, says ONS

Prices of new build properties in England increased over 17% in a year with record loans from the government’s Help to Buy scheme.

23 Sep 2017

House prices in university towns are up by 22% over the course of a degree

Parents could be better off buying a student flat than paying children’s rent as prices in university towns rise £38,666 during a three year course.

18 Sep 2017

Equity release homeowner demand soars unlocking £1.4 billion from property

The amount of wealth accessed by homeowners in 2017 by using equity release has increased 55% over the year helped by more products.

Call for your free quote 0800 955 0058

IMPORTANT

Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

WARNING

Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.

CONTACT

Address:
Bury House, 31 Bury Street,
London, EC3A 5AR

Phone:
020 8801 5856

Email:
info@londoncitymortgages.co.uk

London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

2019 © London City Mortgages.
Website designed & developed by Spyre Media