The house prices in London have remained stable witnessing a growth of 2.3 per cent annually, according to the latest UK House Price Index, released by Hometrack.
The annual average growth rate of London house prices was 8 per cent since 2010, but it has come down since 2016. However, the slower growth in houses prices has not deterred investors from acquiring properties in London because of the city’s strong fundamentals, which are delivering safe ROI in the long term.
House price growth across the markets covered by the London City index range from +4 per cent in Epping Forest and Gravesham to -5 per cent in the City of London. However, other cities are witnessing good growth in houses prices – Edinburgh is the fastest growing city (6.7 per cent), overtaking Manchester (6.5 per cent) and Birmingham (5.9 per cent).
The average annual rate of UK city house price growth was 4.9 per cent. Hometrack expects house prices to continue to rise in regional cities where values are still growing off a low base and affordability remains attractive. The rate of growth is likely to moderate around its current level, tempered by economic and sentiment factors – the squeeze on incomes from rising inflation.
Nominal house price growth in London has stabilised at 2.3% per annum