House Prices In London Fall (Slightly)
Last week Nationwide said that London house prices fell for the first time year-on-year since the height of the financial crisis eight years ago. This fall in prices is hardly surprising considering the huge uplift in prices seen over the past six years however it’s still a sight not often seen in newspapers and thus it poses a unique opportunity to many potential buyers.
Mortgage Interest Rates Still At A Record Low (But Not For Long)
In recent weeks, Bank of England policymakers have signaled that they are nearing the point of raising interest rates for the first the time in more than a decade. Rates are at an all-time low of 0.25%, and economists believe the monetary policy committee could vote for an increase to 0.5% as early as November.
Combined- What does this mean for buyers?
House prices in London are highly unlikely to face a continued decrease in value. They are far more likely to hold at around the current level, wait for the wider economy to speed up (and possibly wait for government policies to be implemented that are designed to get the market moving), and then continue increasing. Therefore it is a great time for buyers to tie in a low mortgage rate whilst also securing a property in London at it’s actual market value (a rarity over the past few years).
In our professional opinion it is one of the best times to buy a property in London!