London homeowners braced for fall in property prices

London homeowners have been warned to brace for a 10% drop in property prices by autumn as higher interest rates send mortgage payments soaring. Leading City forecaster Samuel Tombs predicts that the capital is particularly vulnerable to a slump due to buyers taking on such large loans to get on the property ladder. UK Housing Watch analysis revealed that prices nationally would fall 8% “peak to trough, with the bottom coming in the autumn”. The capital is expected to see a bigger fall of around 10%, as higher mortgage rates will have a bigger impact on affordability in London due to high loan-to-income ratios. It comes as Rightmove found the percentage of London properties reduced in price has increased from 29% last year to 38% now. Meanwhile demand is 22% lower than this time in 2022, and the average time to find a buyer in London is up to 70 days, from 57 days last year. 

Evening Standard (07/04/2023)