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17 April 2019

London slump hits UK house prices

The UK consumer price index has unexpectedly held at 1.9% for March 2019 according to the latest inflation figures from the Office for National Statistics.

James Rowbury, Investment Research Coordinator at investment management and stockbroking firm Redmayne Bentley, said: “This was slightly below expectations, illustrating a continuation of the slowing growth outlook for the UK economy. Some key drivers on the upside were rising transportation, housing and utility costs, offset by a slowing in the cost of food and non-alcoholic beverages.

“While annual average wage growth continues to rise and outstrip UK inflation, it is no longer the cost of living that is the most interesting part of the numbers. House price inflation is now at its weakest rate since September 2012, with the downward trend in London being the biggest influencer.

“London is now experiencing its biggest housing slump in a decade, tumbling by 3.8% on the year. For a city so heavily reliant on overseas investment and a migrant labour force, it is as yet unclear whether this is an impact of the ongoing Brexit uncertainty, or a welcome correction to an overheating market which has become increasingly unaffordable to participate in as an owner-occupier.”

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London slump hits UK house prices
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