London property price growth at lowest level for 20 months

London property price growth at lowest level for 20 months

Investors are seeing levels of appreciation ease in the capital, but housing across the rest of the UK is seeing prices surge in key regional cities.

Summary:

  • Property price growth in London has slowed to its lowest level in almost two years
  • But 11 regional cities, including Manchester, have registered higher growth than at the start of 2016
  • While some are pointing towards a rise in London supply levels, huge demand to supply imbalances across the rest of the country are driving returns for investors

It’s renowned for its history of long-term capital growth for property investors, but London’s level of price growth is currently at its lowest for 20 months.

New data from Hometrack shows that London has registered house price rises lower than at the start of 2016 and its lowest quarterly growth for almost two years. The report cites greater unaffordability and declining buyer demand for the slowdown.

Property prices in London increased by just 0.9% in the last quarter, compared to an average of 3% over the last three years. Estimates suggest that the current slowdown will reduce the annual rate of growth, currently at 10%, by half by the end of the year.

Adrian Gill, Executive Director of Your Move & Reeds Rains, believes slowing London prices points to increased supply in the UK capital. Gill, however, emphasised that “London house price growth slowing to its lowest level in two years should not be seen as a negative reflection of the wider market”.

11 regional cities, including Manchester, Liverpool and Birmingham, are currently registering higher property value rises than at the start of the year.

Manchester, for example, has one of the lowest levels of housing supply in the country. But it’s population is rising the fastest of any city outside London, putting pressure on both the city’s owner-occupier and private rented sectors.

DOWNLOAD YOUR FREE EDITION OF THE EBOOK:

Investing in Manchester:
Why is Manchester at the heart of the build-to-rent revolution?

Subscribe to our newsletter

Please enter your name and email address

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Select Property Group in relation to its property investment brands.

There was an error with your subscription. Please try again.
Thank you for subscribing. You will now be fully informed of all investment property news and insights.