London Property Prices Tumble

London house prices have plummeted at the fastest rate since 2009, according to the latest data from the Land Registry. The average price in the capital has dropped by 6% year-on-year to £505,000, marking two consecutive months of significant declines.

A Rapid Decline

In November alone, prices fell by more than £10,000, totaling a £26,000 decrease over two months. This rate of decline is much faster than the rest of the nation. The average house price across the UK now stands at £285,000, following a 2.1% year-on-year decline, the largest since 2011.

Expert Opinions

Nick Leeming, Chairman of Jackson-Stops, commented on the figures, suggesting a frosty end to the year with buyers pausing their searches to monitor potential changes in mortgage rates as inflation continues to fall.

Andrew Montlake, Managing Director at broker Coreco, noted that the weak headline number is unsurprising given the time lag in this data. He anticipates a continuation of small price falls with potential improvements later in the year, provided mortgage rates do not increase.

Looking Ahead

Jason Tebb, President of OnTheMarket, added that the pause in interest rate hikes has stabilized the market and boosted buyer confidence. However, the recent cut in mortgage rates may have come to an abrupt end today after higher than expected inflation figures were released.

Tebb concluded that the unexpected slight increase in inflation suggests potential future challenges and a possible delay in the reduction of the base rate. As ever, sensitive pricing is crucial, and sellers who seek advice from a local agent should find ample opportunities to transact successfully this year.