London house prices:seasonal slowdown sees prices fall in half of the capital's boroughs - but there are pockets of growth

London house prices continue to slow, but the areas on the fringes of the capital hold strong as Londoners extend their search for good value...

A new report reveals house prices in the capital have fallen by 0.3 per cent this month - the fifth monthly price drop this year - taking the average cost of a London home to £644,000.

But analysts say price falls are not unusual in the run up to Christmas, which is traditionally a quieter time of year. In fact, this year’s drop is the smallest for six years. Prices have fallen an average 1.5 per cent every November since 2010, according to the latest Rightmove House Price Index.

The future isn't as bleak as was feared immediately after Brexit. Recent research from Savills forecasts that the market will pick up again by 2019, with property consultants JLL predicting average property values in a third of the capital borough's wil reach £1m by 2032.

Outer London
Demand remains strong in outer London – with prices holding up in the capital's more affordable outer boroughs. Prices fell by just 0.1 per cent on average in outer London over the past month, but have risen by five per cent over the year.

Unsurprisingly, this means that the cheapest borough, east London's Barking and Dagenham, has enjoyed the biggest price rises - climbing 10.3 per cent to £303,000.

Seven out of the 10 most affordable boroughs have seen prices rise by more than seven per cent in the past year - including Sutton in the south-west, where house prices average £432,000, and Waltham Forest in the north-east where homes cost an average of £469,000.

“Demand remains strong in the lower-priced brackets in London, the South East and East of England, for more affordable and desirable properties within acceptable commuting distance from employment," says Miles Shipside, Rightmove director and housing market analyst.

Inner London
Inner London continues to see the sharpest falls, with another month of negative growth resulting in just 2.7 per cent overall growth since the start of the year.

The hardest-hit boroughs are north-east London's Hackney, which stretches from Shoreditch to Stoke Newington, and south-west London's Wandsworth, which takes in Tooting, Battersea and Putney, where prices have fallen by an average of 5.5 per cent to £650,000 and £787,000 respectively.

However, this could be set to change if the pound continues to depreciate against foreign currencies, increasing the appeal of homes in the capital to overseas buyers - especially now Donald Trump is heading to the White House.

"The continued weight of international money seeking the UK’s ‘safe haven’ status is likely to ensure investor interest for prime central London property," says Stephanie McMahon, Head of Research at Strutt & Parker.

"A relatively small number of our prime central London buyers currently come from North America. But following Trump’s triumph in the presidential election it is possible that this may change."


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