London is home to some of the most impressive and beautiful properties in the world, but recent statistics published by data providers suggest that the capital’s houses aren’t attracting quite the same amount of interest as they once did. Industry experts are beginning to speculate about the declining property sales in the big smoke, and there are rumours in the housing market that London’s property bubble might well be about to burst.
In this blog post, we’ll take a closer look at the latest property news from London and try to establish what’s really going on.
So, is there any truth in these rumours of the property bubble bursting? Well, technically, no. Property experts have been quick to rush in and inform homebuyers that the UK market isn’t technically in a bubble – but they’ve also commented that London is right on the cusp of entering one. There’s no such thing as an impenetrable bubble, and if London does tumble into one by 2017 (which several projections anticipate), then the threat of a property market crash in the capital is a genuine possibility. What’s more – whenever a bubble goes pop, the damage inevitably impacts surrounding areas.
Perhaps the most alarming statistic of all (compiled by LonRes) is that the total value of sales in some of the most affluent and ordinarily attractive London postcodes has dropped by an astonishing 24% in just twelve months. The amount of tax paid on property has subsequently increased as a result. Also, properties worth north of the £5 Million mark have fallen in value by over 30% since 2014.
Despite a small decrease in certain areas, prices on the whole in the London area are on the up – with £443,400 listed as the average property value in 2015. Steadily rising prices and a clear lack of sales has prompted property experts to begin discussing potential solutions for the negative trend, which has the potential to bring the housing market in the capital to its knees for a short time.
Purchasing property can be stressful, and there are always hurdles to overcome and negative statistics. However, there is more to Britain than London! if you are one of many homeowners who are seeking a property outside the London area in 2016, Weale & Hitchen can help.
At Weale & Hitchen, we offer a fully comprehensive residential sales service covering northern Manchester and south-east Lancashire. Whether you’re looking for your first home, or you’re thinking of relocating to this beautiful area of the UK, we have the skills and experience to help you. For more information, please get in touch today. We’re ready to help you!
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