House prices in London fell for a fifth consecutive month in August

Property prices in London dropped for a fifth consecutive month in August and all regions in England and Wales experienced a decline in their annual rates of house price inflation.

House prices in the UK capital fell by 0.6 percent in August, with the average value of a home falling to £580,930 – a decrease of £3,450 compared to the previous month. The decline in August followed a 1 percent fall in July, according to data compiled by LSL Property Services and Acadata.

The LSL/Acadata house price index report explained that the fall in prices is a consequence of steep declines higher priced boroughs in the central London areas. Lower-priced more affordable London boroughs continued to see prices rise.

London
The number of transactions in London has seen was 32% lower over the three months June – August 2016, compared to the same three months in 2015.

The five highest-priced boroughs in London saw prices fall between August 2015 and August 2016 by an average of £123,400, or -9.6%, while the remaining 28 boroughs saw an average increase in prices of +£28,125, or 5.8%.



The change in house prices for all London boroughs

Prior year rank:Rank by price:London Borough:Aug-15Jul-16Aug-16Month % ChangeAnnual % Change
11KENSINGTON AND CHELSEA1,781,5121,662,9241,659,888-0.2%-6.8%
22CITY OF WESTMINSTER1,416,6801,299,9641,291,788-0.6%-8.8%
33CAMDEN1,105,648911,513923,7261.3%-16.5%
44CITY OF LONDON940,323855,400903,7975.7%-3.9%
55HAMMERSMITH AND FULHAM907,454850,808830,913-2.3%-8.4%
66RICHMOND UPON THAMES761,257802,625792,569-1.3%4.1%
87ISLINGTON707,391743,607745,3440.2%5.4%
78WANDSWORTH718,807733,983710,658-3.2%-1.1%
99MERTON586,007614,014610,214-0.6%4.1%
1310LAMBETH559,873589,973588,109-0.3%5.0%
1211BARNET563,574595,914586,988-1.5%4.2%
1012SOUTHWARK568,895599,970572,247-4.6%0.6%
1413HARINGEY558,878565,954564,726-0.2%1.0%
1114HACKNEY566,960561,152561,8790.1%-0.9%
1615BRENT525,203542,875548,6931.1%4.5%
1516EALING540,218549,086548,627-0.1%1.6%
1717KINGSTON UPON THAMES504,948553,625540,112-2.4%7.0%
2018HARROW475,851504,725508,7240.8%6.9%
1819TOWER HAMLETS495,844519,951496,509-4.5%0.1%
2120BROMLEY452,469488,087489,6540.3%8.2%
1921HOUNSLOW489,017464,019471,0281.5%-3.7%
2422LEWISHAM398,932462,984455,080-1.7%14.1%
2623REDBRIDGE391,000445,976452,0851.4%15.6%
2224HILLINGDON401,299442,670448,5101.3%11.8%
2525ENFIELD397,481438,649448,3972.2%12.8%
2726WALTHAM FOREST388,448446,729446,433-0.1%14.9%
2327GREENWICH399,451421,279417,459-0.9%4.5%
2828SUTTON365,764402,582404,6560.5%10.6%
2929CROYDON347,466385,860392,8741.8%13.1%
3030HAVERING325,944373,528373,018-0.1%14.4%
3131NEWHAM320,400351,939355,3131.0%10.9%
3232BEXLEY302,245345,402347,6730.7%15.0%
3333BARKING AND DAGENHAM250,603290,350291,8010.5%16.4%
ALL LONDON568,657584,384580,930-0.6%2.2%

Adrian Gill, director of Your Move and Reeds Rains estate agents, commented on the data:

“We’re seeing a two speed market become firmly established as cheaper parts of the capital and the regions record big price increases driven by demand for affordable homes, while prime London property stalls. At the same time transaction levels are showing how much the market has changed, with the number of properties now held by private landlords changing market dynamics.

This all creates big challenges for government housing policies, which are going to have to be flexible enough to allow regions to make use of the solutions that work best for their different needs.”