Asking prices from sellers in London have seen the largest fall with the average under £600,000 for the first time since 2015.
Average asking prices from sellers in London are at £593,972 according to the latest house price index from Rightmove falling -1.5% or -£9,024 this month.
Homeowners have been deterred from coming to the market due to low house prices and political backdrop resulting in a slow start to 2019 for number of listings -10% lower compared to 2018.
This could be an opportunity for first time buyers and home movers to buy with property values well below the May 2016 peak of nearly £650,000.
London continues downward trend
House prices in Inner London are £723,230 reducing -2.0% or £14,759 year-on-year and over the month are lower by -4.5%.
The following table from Rightmove shows the house prices for London Boroughs and the annual change to January 2019.
| Borough | House Price | Annual change |
|---|---|---|
| Camden | -1.1% | 10.0% |
| Westminster | 0.8% | 2.8% |
| Enfield | -0.1% | 0.2% |
| Bromley | 0.4% | 0.1% |
| Waltham Forest | 0.5% | 0.1% |
| Havering | 0.4% | -0.3% |
| Bexley | 0.2% | -0.5% |
| Hillingdon | 1.4% | -0.5% |
| Islington | 2.0% | -0.8% |
| Richmond on Thames | 1.4% | -1.8% |
Camden house prices have improved by 10.0% or £97,670 over the year to £1,074,370 and by 5.8% in the last month.
The largest fall in the capital is Hounslow reducing -8.7% or £39,983 over the year with Southwark lower by -8.0% and Kingston upon Thames down -7.5%.
With higher house prices in the capital buy-to-let landlords can look to outer London for affordable properties to help improve rental yields.
Outer London is more resistant to falls possibly due to the lower house prices averaging £499,666 which have increased 1.5% for the month and down by only -0.2% for the year.
Miles Shipside, Rightmove director and housing market analyst said, London is more closely affected by the uncertainty associated with Brexit and has the most reluctant owners when it comes to putting their properties up for sale.
Even though houses prices are lower, equity release buyers can access wealth in their property using a lifetime mortgage to maintain their lifestyle or give a child or grandchild the deposit on their first home.
More people searching for properties
Despite the uncertainty the number of people searching for properties are 5% higher than 2018 according to Rightmove that has an average of 4.5 million visits per day.
Average house prices across the nation are higher by 0.4% over the year to £298,734 with prices for first time buyers up 1.1% at 190,086.
For home movers property values have increased by 1.6% averaging £270,750 whereas the top of the ladder prices are -0.4% lower at £517,921.
The national average prices are been dragged down by new-to-the-market sellers having less pricing power due to Brexit uncertainty and strongly influenced by London and the South East with 30% of market listings.
Home movers are still searching in vast numbers although it may be easier for remortgage buyers to stay in their existing home if there is poor supply of suitable properties to buy.
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.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, mortgage monthly cost calculators, and property value tracker chart.
For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to pay for care at home or even reduce inheritance tax owed by your beneficiaries.
