London house prices:average asking prices drop by £19k in a month as Brexit uncertainty hits 'already slowing inner London market'

Across the capital's most central boroughs, property prices have fallen for a third consecutive month, while the more affordable districts on the outer edges of London remain steady.

Average asking prices in London's inner boroughs dropped by more than £19,000 during the four-week period overlapping the EU referendum on 23 June, new figures show.

While demand and asking prices have remained steady in the more affordable districts on the outer edges of the capital, falls throughout the Inner London market started well before the referendum, with this month seeing reductions at their highest levels since November 2015.

However, despite a drop of 1.2 per cent across Greater London, the average price of a home listed for sale in the capital is £635,710, according to Rightmove’s monthly house price index.

Miles Shipside, Rightmove director and housing market analyst comments: “This year has the added dynamic of a readjusting market in parts of Inner London, where previous years’ fast-paced price rises and the more punitive property taxes were already pushing prices down before the added referendum uncertainty.”

Of London's 12 innermost boroughs, prices have plummeted in the seven cheapest: Lambeth (-7.4 per cent), Southwark (-6.5 per cent), Hackney (-4.4 per cent), Newham (-4.0 per cent), Lewisham (-2.8 per cent), Tower Hamlets (-2.5 per cent) and Haringey (-2.3 per cent).

Nationwide house prices are still more than half the Greater London average, with a drop of 0.9 per cent taking the average price of property coming to market to £307,824

House prices in England and Wales:

While the latest price falls could easily attributed to Brexit uncertainty, market analysts are quick to point out that a slowdown was expected in the second quarter of the year following the rush of buy-to-let investment ahead of April's stamp duty hikes.

Previous fast-paced growth and tougher mortgage lending criteria over the past couple of years have also been factors in recent price reductions, while July marks the start of the annual summer slowdown nationwide.

“The onset of the summer holiday season typically results in new sellers who are coming to market at this time of year pricing more competitively," says Shipside.

Despite early signs of the market bouncing back in the weeks following the referendum, most industry experts agree that it is still far too early to predict the short- or medium-term impact of Vote Leave. Although, with the population continuing to rise and a shortage of affordable housing, properties listed at realistic prices should continue to sell quickly.

With uncertainty in the market expected to continue for several months, buyers can take advantage of seeking good deals while borrowing costs remain at an all-time low. Although the availability of competitive, long-term mortgage deals will be crucial in keeping the market steady in the long term.

Stephanie McMahon, Head of Research at Strutt & Parker in London says: “The next few months will allow us to see if the weakening of the sterling has any significant impact. One of the greatest challenges at the current time remains liquidity and volume of stock."


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