London House Price Trends
In April, the average house price in London saw a 3.9% decrease compared to the previous year, bringing the average price to £501,880. This decline comes amidst a broader national trend, where UK house prices rose by 1.1% in the same period, according to the Office for National Statistics (ONS).
Regional Variations
While the overall trend in London is downward, some boroughs have seen growth. Hackney, for example, experienced a 3.5% increase, raising its average house price to £611,025. Newham and Harrow also saw rises of 2.7% and 2.5%, respectively, with Newham’s average price reaching £402,435 and Harrow’s at £513,235. In contrast, traditionally expensive areas like Kensington and Chelsea, Hammersmith and Fulham, and Westminster saw significant declines of 17.6%, 16.1%, and 14.7%, respectively.
Mortgage Affordability and Interest Rates
The decline in house prices is partly due to increased interest rates and mortgage affordability issues. Despite inflation hitting the Bank of England’s target of 2% in May, experts suggest that interest rates are unlikely to be cut until after the General Election on July 4. This decision will impact mortgage rates and the broader housing market.
National Housing Market Overview
UK-Wide House Price Changes
Outside of London, the housing market has shown positive growth. House prices rose by 0.6% in England, 0.4% in Wales, 4.5% in Scotland, and 4.0% in Northern Ireland over the past year. This marks the second consecutive month of annual house price increases in the UK after eight months of declines.
Rental Market Trends
Private rents have continued to rise, with a 10.1% annual increase in London and an 8.7% rise across the UK. Despite a slight slowdown from previous months, the rental market remains strong due to high demand and limited supply.
Expert Insights on the Housing Market
Mortgage and Economic Predictions
Industry experts are optimistic about the future. Matt Smith from Rightmove anticipates that the recent drop in inflation is the first step towards lower mortgage rates in the latter half of the year. Similarly, David Hollingworth from L&C Mortgages believes that the Bank of England might cut interest rates once inflation is firmly under control.
Market Reactions
According to Andrew Montlake from Coreco mortgage brokers, hitting the 2% inflation target is a positive sign for the economy. He expects a decrease in swap rates, which could lead to more competitive mortgage products. Jonathan Hopper from Garrington Property Finders notes that current figures reflect high market activity from earlier in the year, while Matt Thompson from Chestertons highlights that many buyers secured mortgages before recent rate hikes.
How Angel Properties Can Help
At Angel Properties, we understand the challenges and opportunities in the current housing market. Whether you’re looking to buy, sell, or rent, our expert team can provide valuable guidance and support. Learn more about what we do and explore our locations to find the perfect property. If you’re thinking of selling, request a valuation or discover how to sell your house fast in London.
Original Link: https://www.standard.co.uk/homesandproperty/property-news/average-uk-house-price-increased-by-1-1-annually-in-april-b1165335.html
