Property prices in London dropped for a fifth consecutive month in August and all regions in England and Wales experienced a decline in their annual rates of house price inflation.
House prices in the UK capital fell by 0.6 percent in August, with the average value of a home falling to £580,930 – a decrease of £3,450 compared to the previous month. The decline in August followed a 1 percent fall in July, according to data compiled by LSL Property Services and Acadata.
The LSL/Acadata house price index report explained that the fall in prices is a consequence of steep declines higher priced boroughs in the central London areas. Lower-priced more affordable London boroughs continued to see prices rise.
The number of transactions in London has seen was 32% lower over the three months June – August 2016, compared to the same three months in 2015.
The five highest-priced boroughs in London saw prices fall between August 2015 and August 2016 by an average of £123,400, or -9.6%, while the remaining 28 boroughs saw an average increase in prices of +£28,125, or 5.8%.
The change in house prices for all London boroughs
Prior year rank:
Rank by price:
London Borough:
Aug-15
Jul-16
Aug-16
Month % Change
Annual % Change
1
1
KENSINGTON AND CHELSEA
1,781,512
1,662,924
1,659,888
-0.2%
-6.8%
2
2
CITY OF WESTMINSTER
1,416,680
1,299,964
1,291,788
-0.6%
-8.8%
3
3
CAMDEN
1,105,648
911,513
923,726
1.3%
-16.5%
4
4
CITY OF LONDON
940,323
855,400
903,797
5.7%
-3.9%
5
5
HAMMERSMITH AND FULHAM
907,454
850,808
830,913
-2.3%
-8.4%
6
6
RICHMOND UPON THAMES
761,257
802,625
792,569
-1.3%
4.1%
8
7
ISLINGTON
707,391
743,607
745,344
0.2%
5.4%
7
8
WANDSWORTH
718,807
733,983
710,658
-3.2%
-1.1%
9
9
MERTON
586,007
614,014
610,214
-0.6%
4.1%
13
10
LAMBETH
559,873
589,973
588,109
-0.3%
5.0%
12
11
BARNET
563,574
595,914
586,988
-1.5%
4.2%
10
12
SOUTHWARK
568,895
599,970
572,247
-4.6%
0.6%
14
13
HARINGEY
558,878
565,954
564,726
-0.2%
1.0%
11
14
HACKNEY
566,960
561,152
561,879
0.1%
-0.9%
16
15
BRENT
525,203
542,875
548,693
1.1%
4.5%
15
16
EALING
540,218
549,086
548,627
-0.1%
1.6%
17
17
KINGSTON UPON THAMES
504,948
553,625
540,112
-2.4%
7.0%
20
18
HARROW
475,851
504,725
508,724
0.8%
6.9%
18
19
TOWER HAMLETS
495,844
519,951
496,509
-4.5%
0.1%
21
20
BROMLEY
452,469
488,087
489,654
0.3%
8.2%
19
21
HOUNSLOW
489,017
464,019
471,028
1.5%
-3.7%
24
22
LEWISHAM
398,932
462,984
455,080
-1.7%
14.1%
26
23
REDBRIDGE
391,000
445,976
452,085
1.4%
15.6%
22
24
HILLINGDON
401,299
442,670
448,510
1.3%
11.8%
25
25
ENFIELD
397,481
438,649
448,397
2.2%
12.8%
27
26
WALTHAM FOREST
388,448
446,729
446,433
-0.1%
14.9%
23
27
GREENWICH
399,451
421,279
417,459
-0.9%
4.5%
28
28
SUTTON
365,764
402,582
404,656
0.5%
10.6%
29
29
CROYDON
347,466
385,860
392,874
1.8%
13.1%
30
30
HAVERING
325,944
373,528
373,018
-0.1%
14.4%
31
31
NEWHAM
320,400
351,939
355,313
1.0%
10.9%
32
32
BEXLEY
302,245
345,402
347,673
0.7%
15.0%
33
33
BARKING AND DAGENHAM
250,603
290,350
291,801
0.5%
16.4%
ALL LONDON
568,657
584,384
580,930
-0.6%
2.2%
Adrian Gill, director of Your Move and Reeds Rains estate agents, commented on the data:
“We’re seeing a two speed market become firmly established as cheaper parts of the capital and the regions record big price increases driven by demand for affordable homes, while prime London property stalls. At the same time transaction levels are showing how much the market has changed, with the number of properties now held by private landlords changing market dynamics.
This all creates big challenges for government housing policies, which are going to have to be flexible enough to allow regions to make use of the solutions that work best for their different needs.”