The average house price in London has long been much more expensive than almost anywhere else in Britain, but over the past few years values in the capital have seen lower house price inflation than in other regions, closing the price gap a little.
Now, however, it seems London prices are set for an outright drop along with the rest of the country, as the boom in values over the last couple of years has come to an end and is about to go into reverse.
According to the Office for National Statistics, the typical UK house price in September 2022 was £295,000, the same as in August. This meant that the annualised figure dropped from an increase of 13.1 per cent to 9.5 per cent, although the size of the drop was partly influenced by a surge in prices in September 2021 caused by a change in stamp duty rules.
Those visiting estate agents in Sutton looking for property bargains will have more than just static prices to consider, however, for the end of the increase is also set to be the start of a major drop. According to the Office for Budget responsibility, the average house price in the UK will plummet by nine per cent between now and the end of 2024.
Of course, the prospect of a buyers’ market is not all good news. It comes in the context of an anticipated lengthy recession and with Consumer Prices Index inflation now at 11.1 per cent, more interest rate rises are likely, leading to higher mortgage costs, at least in the next couple of years.
However, for those with the money to spend and a secure income the prospect of being able to capitalise on the opportunity to secure a home at a reduced price is one those who can will jump at. That is why the next few months may be a very good time to see how you might be able to make the most of the situation.