London property prices fall after eight-year boom
HOUSE prices in London have fallen for the first time in eight years as values in the North rose faster than those in the South.
Prices across the UK overall rose by two per cent in the 12 months to September, according to the Nationwide.
Property prices in the capital fell 0.6 per cent year on year, figures from the building society show. London was the only region to record a drop in property prices this month.
Northern England saw a 3.2 per cent year-on-year increase while in the South prices rose 1.9 per cent.
Although house prices are now rising faster in the North, many years of higher inflation in the South have generated a huge divide in the cost of a property.
Nationwide said: “While price growth in the South has slowed the gap in cash terms between southern and northern England is still exceptionally high at £171,000 – a figure which has doubled over the past decade.”
The East Midlands was the strongest performing region, with prices up 5.1 per cent year on year. Alex Gosling, chief executive of online estate agents HouseSimple, said: “The London market has caught a cold and in all honesty there won’t be too many people sympathising.
“Prices in the capital are out of reach for all but the privileged few and the bank of mum and dad has had to make some pretty sizeable withdrawals in the last few years to help young buyers climb on to the property ladder.
“Many Londoners will actually be hoping that house prices continue to fall until they reach an affordable level.
“The London property market has enjoyed almost a decade of phenomenal growth. But year after year of double-digit growth was unsustainable and inevitably going to come to an end at some point. That point looks like now.
“The introduction of a second-home stamp duty surcharge has hit the London market more than any other.”
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