An overview of the London property market as at July 2019
- In England house prices grew by 1% in the year to May 2019 with the North West experiencing the greatest monthly price rise, up by 3.4% over April.
- London shows, on average, house prices have fallen by 2.4% since April 2019. An annual price fall of 4.4% takes the average property value to £457,471.
- The average property price in Camden is now £822,928 representing an annual drop of 1.8%.
- The most expensive area (in London) to live in remains Kensington and Chelsea, where the cost of an average house is £1.25million. In contrast, the cheapest area to purchase a property remains Barking and Dagenham, where an average house cost £297,000.
Market reaction to the new Prime Minister
(chart source : AJ Bell)
A Boris Johnson victory on 23 July 2019 came as no surprise to the markets. The pound rallied slightly when the announcement was made, but this could easily have been a technical correction rather than a vote of confidence in the new PM. The ECB announcement on 25 July 2019 on future QE and lower rates, has also helped underpin the pound and the dollar against a weaker euro.
The relative calm may now be about to change as the new PM made his first Parliament intervention on his Brexit strategy. This may once again fuel uncertainty, at least in the short term, but will also attract savvy investors who have already started to cherry pick sterling assets.
Over the coming months we will also be following further announcements on possible reductions in stamp duty land tax rates on property purchases. So far, these are only promises that were made during a leadership campaign and so should be taken with some caution.