Data from This is Money Mortgages reveals that average house prices in central London have declined by £37,000 over the past year. This drop contrasts sharply with ongoing price rises in northern UK property markets. The weakness in London is largely concentrated in flats, particularly new-builds, which face oversupply and subdued demand. This dynamic is dragging down overall values in prime central areas.
For investors, this divergence highlights a growing regional imbalance. Central London’s market is adjusting to changing buyer preferences and affordability pressures, with high-end flats proving harder to shift. Meanwhile, northern cities continue to attract interest, supported by stronger local economies and more affordable pricing. Our Prop AI Deals data shows that northern urban centres have recorded steady capital growth and rental yield improvements over the same period.
The £37,000 average drop in central London values suggests caution for those chasing short-term gains in prime locations. Conversely, the north’s upward trajectory offers opportunities for longer-term growth and income stability. Investors should weigh these regional trends carefully, considering supply-demand fundamentals and economic drivers rather than relying solely on headline London figures.
Source: https://www.thisismoney.co.uk/money/mortgageshome/article-15754685/Price-inner-London-home-drops-37k-year-northern-property-continues-rise.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
