According to an article this week on the Financial Times website, property prices in London have fallen for the first time in over three years and, if forecasts are anything to go by, they are due to drop further this year. Have you noticed a slight decrease in London house prices recently?
Last month’s Royal Institute of Chartered Surveyors (RICS) survey shows that London is leading the slowdown in the UK’s property market, following a year of rapid inflation.
In the past year alone, house prices have risen by around 10%, and almost twice that in the capital. This has led to concerns of an “overheating” market that could shake up the overall economic recovery.
For the first time since January 2011, there was a slight fall over the previous three months and predictions for a further decline in the next three.
In a year’s time, prices are expected to be 1% higher in London and 2.1% higher nationally. The chief economist at RICS, Simon Rubinsohn, has called these recent statistics a “healthy development”. Supply and demand is becoming more balanced, which could remove some of the upward pressure on property prices, particularly in the capital.
Rubinsohn said this is due to affordability, new mortgage rules and expectations of higher interest rates.
Could these recent figures be a healthy development? And could now be the perfect time to buy?