Home prices in London have been rising continually despite its high levels. Brexit has slowed the rate of increase slightly, but for the first time in 8 years, prices have fallen 1.8 per cent in April to S$1.4 million. The last decline of 2 per cent was in 2009.
Photo credit: Taylor Wimpley Central London
Central London properties experienced the biggest change as the sector underperformed on a whole. Brexit aside, tax increases and unaffordable valuations have also had a part to play in the decline. Consumer confidence suffered a blow in the first quarter and though foreigners are still closing some property transactions in the city, the change is the first indication of the Brexit-effect.
That said, the national annual increase for the United Kingdom still registered at 2.2 per cent and prices rose 1.1 per cent in April. On average, prices have risen 1.6 per cent during this time over the past 7 years. The luxury property market perhaps saw the biggest change with a 4.2 per cent annual decline. Properties in less expensive suburbs posted a 1.7 per cent decline. Most of the country have however enjoyed a surge in spring but some higher-end real estate are seeing the need to re-adjust prices to make sales.