|UK Land Registry data||June average price||Monthly change||12 month change|
|Kensington and Chelsea||£1,254,725||-1.2%||-4.0%|
|City of Westminster||£965,019||-0.8%||-0.4%|
- England house prices grew by 0.7% in the year to June 2019, unchanged from May 2019.
- Across England, all houses showed an increase in average price in June 2019 when compared with the same month in the previous year.
- In London, average house prices fell by 2.7% in the year to June 2019, up from a fall of 3.1% in May 2019.
- The average property price in Islington is now £615,783 representing an annual drop of 6%.
- In June 2019, the most expensive area to purchase a house was Kensington and Chelsea, where the average cost of a house was £1.25 million. In contrast, the cheapest area to purchase a house was Burnley, where the average cost of a house was £89,000.
Uncertainty persists, but not for everyone
As talk of a 'no deal' Brexit continues and the trade dispute between China and the US remains unresolved, it comes as no surprise that global financial markets are uneasy. Recent announcements of a contraction in the GDP of the UK and Germany did not help either. Over the past few days the FTSE-100 and Dow Jones fell by around 3%, and on 9 August 2019 the pound hit a 10-year low against the euro trading at €1.0737.
Despite this backdrop some investors are carrying on with business. This week builders Berkeley Group unveiled plans for a 1,800-home 'King's Road Park' scheme in Fulham, and the Battersea Power Station Chief Executive was quoted saying that sales at the £9bn development in South West London are now "running at £10m a month" (back to 2017 levels).
Softer asset prices and the weakness of the pound will keep on attracting savvy long term investors. In the short term, such investments are not expected to have a meaningful impact on property prices. A positive break through in Brexit negotiations or a significant change in taxation, for example in stamp duty land tax rates rates, will be a different matter.