According to information captured by data provider Hometrack (which is part of the Zoopla property group), house prices are currently falling in almost half of all London postcodes, meaning now could be a great time to buy property. Finally!
Their data reveals that "42% of postcodes are registering year on year price falls", which is the "highest [negative growth] since the global financial crisis in 2008." The remaining 58% of London postcodes are still registering growth, but the ones which are seeing the highest decline in house prices include areas in inner London, like Camden, Islington, Southwark and Wandsworth. Who would have thought it, eh?
While this is all well and good, we bet you're still stumped as to why we're experiencing such a drastic drop in house prices? Well, according to Hometrack the drop "is a result of tax changes impacting overseas [and] Brexit uncertainty." Essentially, tax prices and Brexit have affected overseas and domestic investors’ interest in London property. So something good has come of Brexit after all.
Although prices are dropping across London, the actual cost of owning a house in the city is still outrageously expensive, with the average one costing a whopping £487,900. So, is this actually a good time to get onto the property ladder? Well, yes, if you have a hefty amount of life savings stocked up. If not, then it's probably not going to be that cost effective, because although we are seeing a decline in prices, the average starting price is so extortionately high that a slightl drop in cost won't make or break the bank. Annoying, we know.
But here's some good news: Hometrack "expect the number of markets with falling house prices to grow further in the coming months as buyers accept lower prices to achieve sales." Hopefully this means that some of us millennials will be able to get onto the property ladder in the near - maybe, just maybe, if we save up enough. We won't go blowing all of our money on avocados and fancy Sunday brunches, then. Oops.
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This article originally appeared on The Debrief.