With the powerhouse of London starting to hit affordability levels, prices and rents are likely to be fair more stable next year than the runaway increases we have seen post the recession. Many headlines will no doubt say this is a time to ‘panic’ but that will just worsen the market in the short term. The reality is that property to buy and rent is still way short of demand and the money is still around for people to purchase as the London economy continues, for many, to still pay well.
Downturns or slowdowns though are not bad news for property people. Many in London have seen some huge gains over the last few years so have done well while others will have seen their property values rise above the heights achieved prior to the recession, so little chance of negative equity looming moving forward in the market if the forecasters are proved correct.
So all in all, good news for most Londoners next year: calmer markets, that makes buying and renting easier and for those that are selling yes you may have to price competitively and take a little longer to sell your home, but no more than the rest of the country experiences on a day to day basis, so no need to panic!
Which areas are performing best year on year?
These areas aren't necessarily the places where house prices are most expensive but they are the ones where prices have grown the most, does your borough make the top five?
Which areas are performing worst year on year?
Prime areas such as Hammersmith & Fulham and Kensington & Chelsea are actually experiencing negative growth YoY, here are the five area where prices are actually dropping:
What next for London property prices?
The forecasters have been very busy as always at the end of the year and here are their views on the future of London property price increases. Remember though, this is a real generalisation and there will always be good money to be made by savvy buyers and investors.
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What about London rents?
Here's what the forecasters are saying: