Brexit blues knock house prices across London

Almost every borough has been affected by the UK's plans to leave the European Union

epa06418344 A sign advertising a house sale is displayed outside a residential property in London, Britain, 05 January 2018. London property prices went into decline in 2017 for the first time since 2009. The average price of a home in London fell 0.5 per cent in 2017 to £470,922  EPA/NEIL HALL

All but two of London’s 32 boroughs have seen asking prices drop as Brexit uncertainty continues to bite in the capital.

Prices for newly marketed properties in London have dropped 2.5 per cent in the past 12 months, property-website Rightmove said in a report published Monday, meaning houses are an average of £16,157 pounds (Dh3,453) cheaper.

In Kensington and Chelsea, where the average price is about £1.6m, asking prices have come down 3.9 per cent, or about £65,000 pounds. Only in Barking and Dagenham and Bexley, among London’s least expensive areas, did prices gain in the period.

“It’s a strikingly accurate reflection of the current London market that the only two boroughs to see new seller asking prices higher than a year ago were the two cheapest last month,” said Miles Shipside, Rightmove director and housing market analyst.

While prices rose a seasonally boosted 1.2 per cent in May from the previous month, the annual figures underscore the downbeat mood in the London market, which has seen values hit by Brexit, slowing growth and tax changes in recent years. Nationally, the picture is brighter with prices eeking out a small annual gain and Wales, the midlands and northwest setting record highs.

In May alone, asking prices rose 0.9 per cent to an average of £308,290, Rightmove said.