London prop­erty prices fall after eight-year boom

Daily Express - - NEWS - By Sarah O’Grady Prop­erty Cor­re­spon­dent

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.”

The lorry crashed through the cen­tral reser­va­tion and smashed into two cars

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