As the effect of Brexit deepens, the housing market in England continues to slow down. While prices are soaring in some northern cities, their decline is increasing in the south, particularly in London.
The Brexit effect is still being felt on London property prices. In some parts of the British capital, the fall is estimated at 15%, according to the British daily The Guardian, which cites one of the largest real estate networks, Your Move. This is the case for houses located in South London and more precisely in one of the Greater London districts, Wandsworth. Their average price has risen over the past two months from £805,000 (€906,430) to £685,000 (€771,378).
Another example is the Southwark district, still in the south of the capital. Over the last twelve months, the average house price has fallen from 666,000 pounds (nearly 750,000 euros) to 585,000 pounds (about 659,000 euros), a decline of just over 12%. These two districts were known, according to The Guardian, to have long been examples of real estate speculation in the south of the country, before seeing their prices fall sharply in recent years.
After a decline of 1.8% in 2017, a decline of 2% to 3% in London prices is anticipated by real estate experts. The purchasing power of British households has suffered in recent months from a sharp rise in inflation driven by the rise in the price of imported products, due to the fall in the pound sterling since the British decision to leave the European Union in the referendum of 23 June 2016.
In contrast to this generalized decline, the north, and more precisely the northwest, of England is doing better than resist. Some cities or regions are experiencing spectacular growth. This is particularly the case for Blackburn, which has recorded the strongest increase in the last twelve months: +16.4%. Other regions in the northwest, such as Greater Manchester or Merseyside, a metropolitan county in England, posted increases of 4% and 8% respectively. As a result, on a national level, prices fell by 0.6% year-on-year but seem to have risen very slightly last month: +0.5%. To be continued.