Official ONS figures show a 2% drop during February and a 3.8% year-on-year drop as the capital's buyers hold off until Brexit is solved.
London house prices are in freefall and dropped on average by 2% last month and 3.8% overall year-on-year, the government’s official ONS house price index has revealed.
The capital’s problems are evident across the board, with all types of properties experiencing reductions in value although apartments and maisonettes are hardest hit, down nearly 6% year-on-year.
Brexit is clearly worrying everyone in London; houses that attract all types of buyer whether it’s cash, mortgaged, first time buyer or second stepper have reduced in value recently.
The rest of the UK remains stable and most regions except Yorkshire and the Humber (-2.5%) saw house prices rise during February by approximately half a percent.
“Today’s ONS figures suggest that the background drone of Brexit is inevitably taking its toll on some pockets of the property market,” says Nick Leeming, Chairman of Jackson-Stops (pictured, left).
“With the majority of would-be sellers still sitting on the fence and buyers now raring to go, this increase in demand and lack of supply is keeping prices up in the North West and the West Midlands in particular.
While England smarts, Wales has been enjoying a mini boom; house prices are up by 4.2% year-on-year, the figures reveal.
Haart’s CEO Paul Smith says this is down to the removal of tolls on the Severn Bridge.
“Areas closest to the bridge such as Newport are reaping the biggest rewards. House prices here grew 9.5% on the year, offering significant opportunities to buy-to-let investors looking to maximise on growth potential,” he says.