The London property market is facing a number of challenges in 2023, including rising interest rates, inflation, and a shortage of supply. As a result, house prices in the capital have been falling in recent months.
According to the latest data from Nationwide, the average house price in London fell by 0.2% in June 2023. This is the third consecutive month of price falls, and takes the annual rate of decline to -3.5%.
However, there is some variation in house price performance across different parts of London. For example, prices in the City of Westminster have fallen by 0.7% in the past year, while prices in Richmond upon Thames have actually risen by 0.5%.
Overall, the outlook for London house prices in 2023 is uncertain. On the one hand, rising interest rates and inflation are likely to continue to weigh on prices. On the other hand, the shortage of supply could help to support prices in the short term.
What does the future hold for London house prices?
Experts are divided on the future of London house prices. Some believe that prices will continue to fall in the coming months, while others believe that prices will bottom out in the second half of 2023 and then start to rise again.
Capital Economics forecasts that house prices in London will fall by an average of 7% in 2023. However, Savills is more optimistic, predicting that prices will rise by an average of 6.1% over the five-year period to 2027.
Ultimately, the future of London house prices will depend on a number of factors, including the pace of interest rate rises, the level of inflation, and the supply of new homes. However, it is clear that the market is facing some challenges in 2023, and buyers should be prepared for further price falls in the near future.
What does this mean for buyers and sellers?
The current market conditions are challenging for both buyers and sellers. Buyers are facing higher prices and rising interest rates, which is making it more difficult to afford a home. Sellers are facing a shortage of demand, which is making it harder to sell their homes.
However, there are still some opportunities for buyers and sellers in the London property market. For buyers, there are a number of good deals to be found in less desirable areas. For sellers, it is important to price their homes competitively and to be prepared to negotiate.
Overall, the London property market is in a state of flux. Buyers and sellers should be aware of the challenges facing the market and should be prepared to act accordingly.
