House price growth in London has returned to the positive territory with the UK capital registering 0.7 per cent inflation in July 2018.
“Our more granular house price indices confirm this trend with a growing proportion of London postcodes registering month on month price gains. More postcodes are registering monthly price rises than falls,” said Hometrack in its UK House Price Index for June 2018.
The current stabilisation in London house price growth reflects greater realism on the part of sellers in the wake of a two-year re-pricing process. London is likely to maintain this moderate house price growth in the coming months, as sellers continue to revise their selling prices.
The average house price in London in June 2018 was £494,800, the highest for the UK, followed by Cambridge at £439,600. Though Liverpool and Manchester witnessed the highest price inflation in the UK at 7.4 per cent and 7.2 per cent respectively last month, the houses price in the two cities were almost three times less than that of London.
Despite Brexit and its impact on the economy, the UK housing market, especially London, has been able to withstand the pressure. The strong fundamentals of the London property market have ensured that house prices have not fallen into the negative territory so far.
3-month growth rate in London increases as sellers become more realistic on pricing: Hometrack