London’s housing market is showing signs of cooling, with asking prices for homes falling by 2.6% in August, marking the biggest drop since 2010. The decline, largely centred in the capital’s most expensive boroughs, comes amid concerns about the impact of Brexit on the city’s property sector. Despite the fall, prices are still 1.2% higher than a year ago, and the average price of a home in London is now £619,409.
Estate agents warn that the slowdown could spread to other parts of the UK, as Brexit uncertainty continues to weigh on the market. The drop in prices is also due to seasonal factors, with August traditionally a slow month for the housing market.
Outside of London, prices fell by 1.2% in August, but are still 4.1% higher than a year ago. The average price of a home in the UK is now £305,500. Meanwhile, the number of properties on the market has increased, with the supply of homes for sale up by 8.6% compared to last year.
In contrast to the slowdown, the rental market is showing signs of strength, with rents increasing by 1% in August, taking the average UK rent to £779 per month. The rise in rents is being attributed to a lack of supply, with the number of rental properties on the market down by 6.9% compared to last year.
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