Seems like the price rise of properties in the capital is on pause this month, after a manic 2013.
Growth in house prices in London slowed down in January after the market saw its most successful year since 2006. Prices increased 0.2% following a strong 10.6% jump in 2013, figures from property-website operator Rightmove show.
The lacklustre improvement is chiefly a result of the drastic drops in home values in London’s most affluent districts, Westminster, Kensington and Chelsea. Asking prices in Westminster, in particular, dropped 8.3%, while values in Kensington suffered a 6.9% fall, Bloomberg reports. In January, a house in London was typically offered for £514,704.
January is generally a month characterised by subdued buyer activity and we can now see that prices are “having a pause” following a busy year of vigorous growth, Miles Shipside of Rightmove said – as quoted the news agency. The capital needs to expand its inventory in order to alleviate the pressure on prices, he added.
On a national scale, asking prices advanced 1% in January, seeing their strongest increase for this time of the year, Rightmove also revealed.
London is dictating developments in the housing market; limiting housing stock fails to comply with demand for properties, and the city’s growing economy drives the country’s improving metrics. The housing market will remain one of the country’s best assets in 2014 and is expected to continue to see solid growth, Bank of England Governor Mark Carney said earlier this month.