London house prices forecast to fall 12%

Property prices in London are set to fall by 12% over the next two years as buyers in the country's most expensive market are hammered by the cost of living crisis and surging interest rates, according to new research. Home values in the capital will drop nearly twice as far as in the rest of the country, which will see an average price fall of 7% by the end of 2024, according to Capital Economics. London house prices will fall by 8% in 2023 and by a further 4% in 2024, it forecasts, meaning the average £538,000 London property will lose £65,560 in value. The capital will be worse hit than the rest of the country because homes are so much more unaffordable in relation to earnings. This means buyers are much more heavily reliant on the mortgage market and are therefore most exposed to rising interest rates. 

The Dally Telegraph (24/08/2022)