House prices in central London set to flatlineComments Off on House prices in central London set to flatline
Central London house prices will stagnate next year amid fears young professionals will give up trying to buy a house in London and move to growing cities in the north.
Rightmove forecasts inner London house prices will flatline in 2016, increasing by 0%.
Outer London will rise by 6%, leading to a 3% price rise in London overall.
A shortage of affordable supply could force an exodus of first-time buyers out of London, despite government initiatives to help people get a foot on the ladder.
“[Next year] may be the year when many young urban professionals finally give up on the London market and consider long-term career moves to the UK’s large, buoyant city-regions,” housing analyst Alasdair Rae said.
First-time buyers saw an average increase of 11% in asking prices last year, although this was down 0.7% month on month.
Interactive map: Changes in average asking prices in November and December
December was a sluggish month for sellers with house prices across the capital falling 0.5% to £616,548 from £619,866 in November.
The City of Westminster and Hillingdon saw the biggest drops with average asking prices down 8.5% and 7.1% from November to December. Camden prices rose by 15.3% over the same period.
Inner London asking prices rose 9.1% and outer London was up 10.6% over 2015.