At a time when the regional property prices are going up and development in the other major cities (in particular Manchester) seems to be on an exponential rise, it seems odd that London’s property market seems to be slipping.
Some would say that London has been a cornerstone of the country wide property market… I would hesitantly disagree. London’s continuing boom did not help the poor strugglers in the depths of the recession and the two cannot be read as one.
I have no doubt that a London property crash would be torturous for the rest of the UK, but a couple of dips don’t have me too worried at the moment. The referendum means that many are ‘holding off’ just in case we vote to leave and confidence once again evaporates from our economy. I suspect that a vote to stay in will cause a resurgence in the London property market as it is buoyed by a new wave of investment.
The recent changes in land prices reflect the trends in the residential market, with an easing of growth in prime central London alongside strengthening markets in some other key cities.