London Homes Set for Second Annual Price Decline in 23 Years

Values to extend drop by 2% over 2019, Hometrack says
Declines will do little to improve affordability for Londoners

Automobiles sit in the streets outside rows of residential housing in this aerial photograph taken over London, U.K., on Tuesday, June 16, 2015. About 32,000 new homes a year are expected to be completed in London for the next five years, about 10,000 less annually than London Mayor Boris Johnson's target, broker Savills Plc said in March.Photographer: Matthew Lloyd

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By Sharon R Smyth

December 19, 2018 at 8:51 AM UTC

Updated on

December 19, 2018 at 10:16 AM UTC

This article is for subscribers only.

London home values will close the year lower for only the second time since 1995 and the drop may accelerate as affordability and the effect of Brexit continue to drag down the market.

Prices are set to close down 0.1 percent this year and may drop 2 percent over 2019, according to property researcher Hometrack. That’s the first decline since a 13.2 percent drop in 2008 in the wake of the financial crisis.