London boroughs record falls in house prices with Wales leading with 4.1% annual growth that defies Brexit uncertainty.
The latest house price index from Rightmove reveals the regions with positive growth with Wales leading up 4.1% over the year to May 2019 bucking any Brexit blues.
Home movers wanting to trade up are confronted with newly-marketed property asking prices at record levels in four out of eleven regions including Wales, the West and East Midlands and the North West.
In contrast house price for Inner London are down -3.8% over the year with an average property value of £762,044 whereas Greater London prices are lower by -2.5% with values of £621,589.
Savings for first time buyers can also be found in Outer London with prices falling by -0.9% in the last year and average values are £522,351.
London house prices struggling
Only two of London’s boroughs have achieved positive house price growth over the year with Barking and Dagenham up 0.9% and Bexley higher by 0.6%.
The following table from Rightmove shows the house prices for London Boroughs and the annual change to May 2019.
| Borough | House Price | Annual change |
|---|---|---|
| Barking and Dagenham | £316,839 | 0.9% |
| Bexley | £408,233 | 0.6% |
| Hammersmith and Fulham | £931,171 | -0.2% |
| Sutton | £470,697 | -0.3% |
| Southwark | £634,232 | -0.5% |
| Islington | £770,123 | -0.8% |
| Hillingdon | £492,585 | -0.9% |
| Bromley | £530,492 | -0.9% |
| Waltham Forest | £481,926 | -1.0% |
| Enfield | £457,398 | -1.2% |
The strongest growth is Barking and Dagenham with house prices rising 0.9% annually and average values of £316,839 with Bexley second up 0.6% and values of £408,233.
For buy-to-let landlords the lower house prices in Greater London means they need a smaller deposit or mortgage and rental yields after interest payments would increase.
First time buyers have benefited with lower house prices down -2.4% annually and an average value of £478,299 and home movers pay -1.6% less over the year with values of £694,633.
For remortgage buyers living in London may find they have large amounts of equity even with lower house prices give them an opportunity to release capital which they can use to improve their home.
Regions enjoying rising house prices
Homeowners in the regions are enjoying a more resilient property market with average prices up 0.9% this month with higher demand with a more active market.
Miles Shipside, Rightmove director and housing market analyst said, price increases are the norm at this time of year, with only one fall in the last ten years.
As new-to-the-market sellers’ price aspirations are under-pinned by the higher buyer demand, that is a feature of the spring market.
The region of Wales has seen house prices reach £200,386 for the first time rising 2.1% this month, South West up 1.9%, West Midlands higher by 1.8% and the North East rising 1.5%.
For older homeowners the rising house prices allows the equity release mortgage buyer to access money and use this to consolidate debt, gift to a family member or friend or pay for care at home.
Activity breeds activity and a greater choice of fresh properties in these record-setting regions helps to spur buyers into action, especially if they have a property to sell, says Mr Shipside.
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.
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.
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 holidays of a lifetime or reduce inheritance tax owed by your beneficiaries.
