House prices have been a fascination with homeowners ever since more people were able to purchase their own property during the 1980s.
Since Margaret Thatcher gave everyone the choice to buy their council house, people have seen them more than just a place to live, sleep and eat; they’re now a solid investment.
Of course, as with all investments, there’s the inevitable rise and fall of prices, with people seeing thousands wiped off the values of their homes during bad times, and steady increases during good times.
However, London seems to have mostly bucked the trend, with consistent and large rises in prices for years.
But things appear to be changing.
According to YourMove, property prices in the capital have seen some drastic drops.
Although the changes vary on area, some places, for example, Wandsworth, have seen drops of 15%, with the average property price falling by more than £100,000 year on year.
This is good news for young professionals looking to move to the capital, not so good for those who have been living there for a while now.
What could be causing this?
It’s hard to pinpoint exactly what is causing this drop, if you ask five estate agents you’ll get five answers, but many will agree that Brexit is having an effect.
London has often been a mecca for the rich, and many foreign nationals invest in property there, much of it left empty (see: 20,000 ghost homes). Seeing as property is scarce in London already, having so many left empty doesn’t help the situation.
Since Brexit, however, there’s been a lot of uncertainty. Maybe this is causing people to sell up and cash in on their investments?
North is the place to be
Of course, nothing is simple in the property world, and in a strange turnaround, the North West is seeing an increase in property prices of around 16.4%.
What does this mean for buyers?
Well, experts are still expecting long-term prices to grow in London. Many see this as more of a ‘correction’ and simply investor jitters due to the uncertainty of Brexit.
When we finally know what Brexit looks like, we should see a return to stability, but with more being invested in the North of the country, and help being given to first time buyers, we may be seeing some healthy signs that the property marketing UK-wide is as strong as ever.