London experiences biggest dip in property prices since 2009, figures show
The falling house prices in the capital have made the UK's property market drop to a five-year-low, figures reveal
TUMBLING house prices in London have dragged down the UK’s property market to a five-year low, figures show.
The capital’s 0.7 per cent slump in July is its biggest since September 2009.
And it is driving a national slowdown, according to the Office for National Statistics (ONS), the Land Registry and other bodies.
Their joint figures reveal that across the UK, house prices rose by just 3.1 per cent to an average £231,000 in the 12 months to July — the lowest annual growth since 2013.
They said: “This is the first time since 2009 that London, the South East and the East of England have been the lowest-ranked regions for growth.” London declines particularly hit flats, with the city accounting for a quarter of all apartment sales. Their average price crept up by just 0.6 per cent to £208,000, the weakest growth of any housing type. Detached houses were up by 4.6 per cent.
In England, where the average home now costs £249,000, the North West showed the most growth over the year, with prices rising by 5.6 per cent. Next was the South West and West Midlands (both 4.4 per cent).
The Sun Says
WHATEVER happened to the Tory housing revolution to transform a generation’s lives?
The latest cash injection is derisory.
The Government is trumpeting £2billion of new funding for housing associations over six years from 2022. That’s just 7,000 homes a year nationwide.
Our population is increasing by almost 400,000 a year. The annual target for new homes is 300,000 — and we doubt even that would lower prices enough for young people to afford to buy in London and the South East.
In fairness, the total HAS risen to 217,000 a year, the most since 2007. But it’s still way short — and the Government’s remedies are woefully timid.
Sajid Javid promised a huge shake-up when he ran housing. He was knocked back by the negativity from Philip Hammond’s Treasury. Then he moved on.
We need to slash planning restrictions and defy obstructive NIMBYs. We need to stop the land-banking that sees developers hoard plots or release homes at a snail’s pace to keep prices high.
We need more cash help for small builders. We should borrow billions, build affordable homes on public land and sell them at a profit for the Treasury.
The Tories need to wake up or housing will sink them. Instead they are hyping up some footling new funding that only partly reverses a previous cut.
It fools no one.
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Wales saw a 4.2 per cent rise to an average £157,000. In Scotland, it was 3.2 per cent to £152,000. Northern Ireland was up 4.4 per cent to £133,000.
In a separate report the ONS blamed the London drop on the fall in EU migration and wider uncertainty over Brexit. High levels of stamp duty may also be contributing, it added.
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