A prounced Brexit effect on UK house prices was unclear up to now but recently released figures indicate we are now seeing a trend. It appears that the very wealthy areas of London are seeing strong downward pressure on prices.
One report indicates the areas such as Balham and Putney are seeing a fall in prices of 12-14% with others reporting falls of greater than 15%. London city centre areas were at the centre of the UK property boom. Many felt a correction may have been needed here.
In any case other areas of the UK are not seeing the same pattern.
Areas in the North-east and North-west of the UK are still registering very high property price growth. The area of Blackburn appears to be experiencing the highest growth.
Other London boroughs are also showing steep price falls. In Southwark, south London, the average price has dropped from £666,000 to £585,000 in 12 months, while prices have pegged back in Islington, north London, from £750,000 to £684,000.
Southwark in London is currently undergoing several massive developments that will see many new apartment properties released in the near future, many with views of the Thames river. One such project is the Battersea Power Station Development.
Reports specific to this development indicate the prices are falling to try and ignite demand. Real Estate Agents Your Move said that across the capital average prices were down 2.6% over the year. They have now fallen for the last three months in a row.
“This is the steepest annual rate of decline in London prices since August 2009, during the last housing slump, which was itself associated with the banking credit crisis of 2008- 09,” it said.
The Brexit effect on UK House prices
Last week figures from Halifax also highlighted how the UK property market is slowing. It said the annual rate of house price growth has fallen to 1.8%, its lowest level for almost five years.