Property prices in England, Wales and Greater London continued to see a slowdown in 2017, reflecting the instability in the economy in the wake of the general election.
The introduction of mortgage caps and the growing new build crisis also impacted on the figures, with numbers falling by a significant 41 percent across the year. According to analysis from London Central Portfolio, sales levels are now at their lowest level on record, even less than during the Global financial crisis.
Average prices continued to grow during the quarter, with quarterly price growth of 4.6 percent after a greater proportion of more expensive properties being transacted. Prices are now 5.4 percent higher than two years ago, a result of investor preference for safe havens in the face of global uncertainty, coupled with discounted prices and a weak sterling.
However, Naomi Heaton, CEO of London Central Portfolio, warned that the “increase in average prices is likely to reflect a greater proportion of higher value properties being sold, rather than any real underlying price growth.”
London saw a particularly weak quarter, with average prices now standing at £610,141 after growing by just 1.2 percent over the quarter. This is a slowdown from the previous quarter, here price growth in the capital stood at 1.5 percent.
