Estate agency predicts a 10% drop in price for Londons homes worth over £1m

Tuesday 24 November 2015  / Ruth Montia

london

Data from estate agency chain Haart indicates UK house prices increase annually at 10.5%, an average of £224,242. This price is fueled by the number of new properties for sale being down 10.1% on a year ago.

This means that despite a drop in demand for homes over the past month, demand overall is still 6.4% up on a year ago.

Haart chief executive, Paul Smith says “The government must take drastic action to encourage the release of homes suitable for families and prevent record high price rises in 2016 for the core of the UK property market. The new Help to Buy ISA available from next week should help first-time buyers save for their deposit but it is stimulating demand without addressing the underlying issue of lack of supply”.

He continues “While house prices in the rest of the UK are likely to continue their current trajectory in 2016, the top end of the market, particularly in London, will see a price correction because of the impact of stamp duty – likely to consist of a 10% drop in value for homes currently priced over £1m”.

The Haart data advises that the London house prices increased 1.5% in October and 4.2% over the whole year to reach a current average of £510,925