The property market in London has been hit harder than any other region in the country by the sharp slowdown since Brexit, official figures reveal today.

The average value of a home in the capital dropped 0.2 percent in September to £483,568, making London the only place in England where prices went into reverse.

Prices in six out of the 33 local authority areas in the capital.Brent, The City, Westminster, Enfield, Kensington & Chelsea, and Lambeth fell year on year. Across London, prices rose just 2.5 percent, less half the national rate of 5.7 percent.

Just outside London, in the South-East region, prices are going up at 5.5 percent a year, suggesting that growing numbers of buyers are giving up on London and looking at locations in the Home Counties instead. Today’s figures do not include the impact of the Bank of England’s interest rate rise this month, the first for a decade. When the benchmark cost of borrowing doubled from 0.25 percent to 0.5 percent.

Jonathan Hopper, managing director of home buying agency Garrington Property Finders, said: “Winter has come early to the London property market. What began as a freezing of prices in the capital’s most exclusive postcodes is turning into a harder frost on both activity and prices.

London is now not just the worst performing English region, it’s a serial laggard. In the 12 months to September, prices in the capital rose at barely a third of the pace of those in the fastest-growing region. This shift is being driven by a steady flight of equity from London — and other previously overheated regions — to areas with greater affordability.

“It’s far too early to talk of the market seizing up, as demand remains relatively robust. But falling real wages and the ongoing problems of affordability are starting to have a noticeable chilling effect.”

North London estate agent Jeremy Leaf said: “Although, of course, there is no average UK price and the UK market reflects all different areas working at various paces, the trend in London is quite different where an excess of supply and weak demand are combining to reduce prices consistently with no real prospect of an increase until early next year at the soonest.”

At the time of the Brexit referendum in June 2016, prices in London were rising at 11.6 percent a year, but they have slowed down dramatically as uncertainty over the withdrawal process from the EU has alarmed buyers. Agents have also blamed higher stamp duty rates for slowing down demand at the top end of the market.

Today’s figures also show that the number of home sales is still plummeting. There were just 6,639 transactions in London in July, down 24 percent on last year. In Tower Hamlets, they fell by two thirds, from 463 to just 160, in an area with a population of more than 300,000.

 

New research suggests : Despite doomsday predictions for house price growth in the capital, prices in Hackney will continue to keep growth strongly over the next three years.

Westminster and Lewisham which will both experience growth of prices of more than four percent. With Hackney are expected to grow more than five percent in the years to 2020.

With Richmond Upon Thames will experience the lowest growth, with prices rising around 1.5 percent. That’s followed by Harrow and Hounslow, where prices will rise around two percent.

The forecast, by KPMG, follows figures published by Savills yesterday which suggested having fallen this year, London house prices will not begin to rise until 2020. The figures suggested prices will fall two percent next year and remain flat in 2019, before rising five percent in 2020.

KPMG said it expected the UK’s economy to remain relatively lackluster, weighing on local demand in London in the medium term.

“On the whole, our projections for the London housing market see a continued cooling in the short term, followed by a gradual rebound in the medium term, which will allow the cumulative price growth to remain positive over the forecast horizon overall.

“However, annual growth rates are not expected to revert to the above-five percent figures seen before 2017 in most boroughs during the period.”

Borough House price growth up to 2020
Hackney 5.31%
Westminster 4.27%
Lewisham 4.11%
Waltham Forest 4.03%
Newham 3.99%
Southwark 3.90%
Haringey 3.75%
Wandsworth 3.73%
Lambeth 3.63%
Islington 3.41%
City of London 3.36%
Barking and Dagenham 3.23%
Camden 3.18%
Tower Hamlets 3.17%
Brent 3.15%
Greenwich 2.90%
Hammersmith and Fulham 2.84%
Kensington & Chelsea 2.79%
Merton 2.63%
Barnet 2.60%
Redbridge 2.60%
Hillingdon 2.50%
Kingston upon Thames 2.46%
Enfield 2.46%
Bexley 2.43%
Croydon 2.43%
Havering 2.40%
Ealing 2.29%
Sutton 2.18%
Bromley 2.12%
Hounslow 2.00%
Harrow 1.93%
Richmond upon Thames 1.65%

HOW TO PERSONALISE YOUR RENTED SPACE

Making a rented space your home is a very tricky task especially as it isn’t your actual home, it’s someone else’s and your just renting it. But never fear Property Property Property is here with some tips and tricks on how you can convert your rented space from being just a rented space to your home.

Seek Permission from Landlord

First of all, make sure you have the permission of your Landlord. If you’re fortunate to have a flexible Landlord who doesn’t mind you suggesting and getting some paintwork and upscaling done on the space, then take advantage of that! However, if you’re Landlord is stricter and doesn’t allow permanent changes (even though painting isn’t permanent), still seek their permission for any changes you may be making to their property.

Now let’s begin….

1. Walls

A majority of the time we want to change and customise our walls, because of walls. So we recommend that your use removable wallpapers that reflect your personality in your rented space, as this will bring to life your character and make you feel homier. Also consider doing a faux wall DIY project, an amazing alternative.

2. Sticking stuff

If you’re into gallery walls or just having paintings/quotes stuck up on your wall for inspiration but your Landlord doesn’t want you nailing stuff on his walls, then we’ve got your back! Consider getting some double-sided tape, blu tack or specific customised adhesive tapes as this will ensure that you can get your gallery wall, without the expensive of drilled walls and an angry Landlord.

3. Flexible furniture

This is one of the most important things you can do! Get flexible furniture as you could easily move it around. If you’re tired of the way your space is set up, with flexible modular furniture you can just opt and switch up the structure and layout of your room at any time.

4. Decorate, Decorate, Decorate

Property Property Property advice you’re to Decorate Decorate Decorate! Adding textiles that interest you or changing the lighting accessories; anything that wouldn’t make permanent changes to your rented space but reflects your personality, you need it!

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Also if you have any tips that you could recommend to us, share them in the comments and we’ll be highlighting them in our upcoming articles in the ‘Home Improvement’ series.