Anyone looking to buy a house in London will have a steeper challenge than in most parts of the UK. The higher cost of housing, like everything else, is of course why workers get paid London weighting.

However, while property is generally much more expensive, price rises in the capital have lagged behind the rest of the UK in recent years, impacted by Brexit and the desire to move away from urban areas the pandemic.

As the pandemic has eased, however, the rate of house price inflation in London did pick up, albeit still trailing the country at large. But the latest data, from the Land Registry, has revealed a dip in the capital’s prices.

These figures show the average house sold in London was 4.8 per cent more expensive than 12 months ago, way below the 8.7 per cent rise seen in the north west, the region with the second lowest increase. At the other end of the scale, the East Midlands recorded a 12.4 per cent rise.  The overall national average was 9.8 per cent.

However, the monthly change, which on the latest figures deals with the data between March and February, told what may be the opening chapter of another story, with London seeing a 0.9 per cent month-on-month decline in prices.

While the capital was not alone in witnessing a fall, this was a bigger drop than the 0.8 per cent seen in the East of England or the 0.2 per cent dip in Yorkshire and the Humber. At the same time, other regions not only grew, but did so in line with annual trends, with the East Midlands again leading the way with 1.2 per cent growth.

Despite all this, London prices remain the highest on average at 523,666. But will that now start to fall in a sustained way?

This is certainly something anyone seeking mortgage advice in London might consider, as the cost of buying a home may be more favourable in the months ahead if prices go on dropping.

Many experts, such as the Capital Economics team of economists, have tipped house prices to decline as the effects of inflation and lower growth – including the possibility of a recession – start to bite.

Those making big house buying decisions need to factor in a range of wider economic issues. One consideration is whether their job is safe if the economy does go into recession. Another is whether any affordability gains from falling prices will be cancelled out by rising Consumer Prices Index inflation, now at nine per cent.

The other big issue is interest rates. This month’s Monetary Policy Committee decision saw a 6-3 vote for a 0.25 per cent rise to one per cent, but the fact three members wanted a 0.5 per cent increase, added to the recent upward trend and the continuing upsurge in inflation mean this key factor in mortgage rates looks likely to increase again soon.

Put together, these factors provide a complex and fast-changing picture. That is why it makes sense to talk to the experts when deciding whether to buy, when to buy, what to buy and the sort of mortgage to go for.

For more information about any of our services, or if you have any questions including is London set for house price falls, get in touch by calling us on 0203 3939 222.

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Hannah D
Hannah D
07:42 09 Sep 19
I would fully recommend Greg and Greenacre Financial Services. As a first time buyer I was daunted by the process of... finding the right mortgage for me however Greg made the process really simple, clear and quick. He was always available to answer any questions and happy to explain everything. I wouldn’t hesitate in recommending Greenacre FS to my friends and more
Jessica Cohen
Jessica Cohen
19:33 26 Aug 19
We first met with Greg in May for advice as we had adverse credit and irregular pay and didn't think a mortgage was in... our reach. Less than two weeks later Greg had fully arranged a great deal for us on our first mortgage. He was available whenever we needed him, 7 days a week and in the evenings. We cannot thank Greg enough for helping us buy our first home!read more
Seren Fletcher
Seren Fletcher
08:56 24 Aug 19
Would highly recommend Greg and Greenacre Financial Services. Was extremely professional and helpful. Our mortgage... wasn’t straight forward due to my husband being self employed but Greg was very knowledgable and managed to find us a really good mortgage. Looking forward to working with him again in the futureread more
13:24 23 Aug 19
Graham at Greenacre was excellent in helping me get a mortgage for my house purchase. He was always available when... needed, provided an efficient service and was very knowledgeable. Highly recommended!read more
Ian Hatter
Ian Hatter
11:07 16 Aug 19
What can I say, Greg has been absolutely amazing in sorting out a mortgage for me I never thought was possible. It has... meant I have been able to buy a house, a few months ago, I would never have dreamed of being able to buy after talking to high street lenders. He worked exceptionally hard and always kept me updated with every step of the process. Buying a house is extremely stressful, but Greg took all that stress away from me. I cannot recommend Greg enough to anyone looking to buy a property. Thank you so much for your help Greg, it's greatly more
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Sean Kelly
15:27 30 Jul 19
10/10 EXCEPTIONAL service and result. Highly recommend. Greg and the Greenacre Financial Services team were fast,... knowledgeable, and honest. All the qualities you want and need. Very pleased I was recommended to Greenacre. Customer for life!read more
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