Today, Nationwide released their quarterly house prices report.
The results are not surprising – annual house price growth slows in September but remains in double digits. It is still 10% per year but the London prices were the weakest. Does it mean the change of wind for the London property market?
“London was the weakest performer, with annual growth slowing to 4.2% from 7.3% last quarter. The surrounding Outer Metropolitan region, which includes places such as Luton, Watford, Sevenoaks and Woking, also saw a softening to 6.8%, down from 8.2% in Q2”
It might slow down due to the end of the stamp duty holidays, but it is still going up. In the long term, the London property market will not disappoint the investors but might make the first-time buyers reluctant to commit. The affordability is being stretched and with house prices going up faster than income, it is getting harder for First-Time Buyers to enter the market.
The outlook for the property market is still uncertain. The upcoming holidays will most likely slow down the demand and the end of the furlough scheme might impact the numbers of buyers on the property hunt.
However, the employment market has been very resilient and there is hope that it will not affect the property market as people will continue to relocate looking for more space as working from home continues for the foreseeable future.
Source: Nationwide House Price Index October 2021