Musings of a London Property Search Agent
April statistics from the Land Registry House Price Index were published today and showed that London house prices have fallen for the third consecutive month, dropping half a percent versus March. However there was also good news.
Firstly, average London house prices are still 6.4% higher than they were in April last year.
Secondly the December slide in average London prices of 0.003% which represented a £10 drop on the average London house price is now recorded as an increase of 0.068% which represents a jump of £240 on the average house price.
Why do the figures change? The blame can be laid fairly and squarely at slow legal practitioners. Usually house sales are registered within 4 weeks of the sale, hence the lag in Land Registry house price data versus indices such as the Halifax or Nationwide. Some sales are always registered late and it is these sales which make the difference as the index is updated to take account of late registrations.
The April data shows that London house prices dropped 0.33% in February, 0.48% in March and 0.53% in April. Is this a sure sign of the house price crash, recession and general gloom and doom? Not necessarily. To put these figures into context, the total drop in prices amounts to -1.35%. But London house prices rose 3.74% between August 2007 and January of this year, so since the credit crunch started, prices are up 2.39%. And prices are still 6.4% higher than a year ago.
The percentage of high loan to value mortgages are nothing like as high as the early 90s, so sellers are sticking firm on prices and buyers are having to rely on auctions, repossessions and people like us to sniff out the bargains. In our opinion the London housing market is far too robust to play a major part in any house price crash. If you want help to find the right place at the right price then look no further than this London Property Search Agent.