Property Market Report (October 2016)
In London, according to Rightmove, asking prices dropped by 2.6% in August. This is thought to be due to an 8% increase in the number of properties on the market, combined with the summer holiday period, which traditionally sees less activity from buyers.
Annual house price growth in London slowed again in July to 12.3%. The average price now stands at £484,716.20
At borough level, Newham remained the strongest performer (+20.8%) followed by Haringey (+20.2%) and Havering (+19.7%). Five other boroughs recorded growth in excess of 19%.
Prices fell in three boroughs: Kensington & Chelsea (-3.0%); Hammersmith & Fulham (-1.6%); and Camden (-0.6%)
A recent survey of chartered surveyors showed that respondents are optimistic that transaction activity will increase over the next three months and they expect prices to increase.
Nationally, house price growth slowed to 8.3% in the 12 months to July, taking the average house price across England to £216,750.
The East remains the region with the fastest rate of price growth (+13.2%), outpacing even London. Average prices are highest in the South East (£313,315) but are around one third lower than in London.
Price growth is slowing from what are unsustainable levels in some regions but even the national average of 8.3% is comfortably ahead of earnings growth. This suggests that even with record low mortgage rates, the size of required deposits plus other purchase costs will result in a further gradual slowing in price growth.
Rental growth across London accelerated slightly to 4% over the past three months, with average monthly rents now £1,599.40. Average rental growth for new tenancies across the country (excluding London) slowed to 2.3% in the three months to July, taking the average rent to £799 pcm.
Recent data from the Tenant Deposit Scheme (TDS) shows that cleaning issues account for the lion’s share of deposit disputes and arises in 58% of the cases they deal with.
Sources: Land Registry / ONS / Chestertons / Rightmove