London price correction is complete despite ‘Brexit hysteria’ – claim

London price correction is complete despite ‘Brexit hysteria’ – claim

Property website Home.co.uk has hailed the end of the ‘price correction’ in London and predicted that price growth will return to the capital and southern regions of England and Wales.

It analysed listed rents in London – described as a sign of a recovery – and found asking rents are up 4% annually this month and have increased by more than 10% in areas such as Islington, Southwark, Haringey, Hammersmith and Hackney.

The rents being requested by landlords in Wandsworth are up by more than 14% annually, the research found.

The website’s analysis of asking prices and agency stock found new instructions are down 14% in greater London and total listings are down 18%, which Home.co.uk predicts could herald a return to price growth for the capital.

The research predicted that recovery appears ‘none too distant’ for the south east, with average asking prices down 1.5% annually and supply falling 3%, but it warned that the east of England remains firmly in the grip of a price correction.

Doug Shephard, director at Home.co.uk, said: “Overall, Greater London’s price correction is complete. Both supply and residual sales stock levels have shrunk and this portends a return to price growth.

“Such is the rate at which yields are improving, we predict a wave of investment, commencing in the central boroughs and moving outwards, which will trigger breathtaking growth in home values over the next twelve months and beyond.”

Overall supply of new instructions was down 2% annually in England and Wales while total stock fell 3%, Home.co.uk said.

Asking prices were down 0.1% on both a monthly and annual basis to £308,607 and typical time on the market for England and Wales is currently 96 days, six days longer than in September 2018, according to the research.

Shephard said: “Nationwide, home prices are holding steady despite all manner of Brexit hysteria. However, at the regional level the property market presents a very mixed picture.

“At one extreme northern and western regions, especially Wales, are in the final throes of their growth phase while the east of England is firmly in the grip of the inevitable price correction, following a long period of unsustainable growth. Such is the cyclical complexity of the British property market.”