This month’s house price data from one of the UK’s most thorough sources of information continues to show prices in Greenwich borough falling sharply.
The monthly change was a fall of 3.2% alone – and whilst monthly data can be noisy and prone to fluctuations annual prices are a more reliable guide and also down 9.7%. That’s the fifth biggest fall of all London authorities. It sees almost £50,000 knocked off the average home in one year.
Much of the reduction is down to new-builds failing to sell with overseas buyers unable to complete after paying deposits or Help to Buy recipients realising they’ve overpaid when it comes to sell. That 20% loan from the government isn’t so good when you’ve overpaid by 20%. Many new builds – especially flats – are priced far above local levels.
Greenwich borough has seen vast numbers of new-builds in recent years which is borne out by some of the highest income to Greenwich Council of any UK authority. Other councils which top the list of building such as Newham and Tower Hamlets see similar annual falls of 9.1% and 7.5%.
Suburban Bexley sees prices stagnant but no big falls as fewer new-builds in the borough impact on prices.
Top of the list
Prices in Westminster and Kensington (and the City) top the list but are extremely variable due to massive prices resulting in one or two transactions distorting both monthly and annual figures. The report quotes a flat selling for £33 million alone.
The trend down looks likely to continue down as Brexit uncertainty continues and the world economy stutters, with Germany barely avoiding recession this week. Central banks will continue to print and throw credit out there – but to diminishing returns? It’s been the default method since 2007/8.
Good luck finding this info or this release in much of the press though. There’s a huge vested interest or in receiving ad revenue from the industry – both in local press, regional and national.