For the first time London asking prices are at a stand still as national average increases by 2.1%

For the first time London asking prices are at a stand still as national average increases by 2.1%

Last April it was reported that house prices have jumped by 2.1% over most of the UK. The only exception to this trend, surprisingly, was London where the average asking price of houses actually fell by around 0.5%. London has traditionally always had the highest housing costs in the country so this deviation from the norm left many people asking what this actually means for buyers.

The recent increase in first time buyers, who are at their highest numbers since 2008, has meant that the vast majority of property agents have increased their asking prices. This rise is an early indicator that the economy may well be recovering at last. The fact that London is not showing the same increase as the rest of the country, however, could be cause for concern.

Or could it? Realistically the high level of London house prices has been incredibly prohibitive for the majority of people who wish to buy property here, especially first time buyers. In fact, increasing numbers of workers in the capital have had to move further away from the city and commute in order to have some kind of affordable housing and keep their jobs.

Perhaps the fact that London house prices are dropping means that at long last property in the capital will become slightly more affordable, a key issue for the many thousands of people who are currently unable to afford to live there. As prices are increasing everywhere else, the closing of the gap in property prices in the capital compared to those in the surrounding areas could be a sign that times are indeed changing.

Of course this could all just be an anomaly, a break from the norm. The fact that April showed a price decrease in London compared to the rest of the country doesn’t necessarily mean that the market is levelling. It remains to be seen whether this is indicative of a wider reaching change in property prices or merely a blip for home owners in the nation’s capital.

One thing is for sure, the increase in both house prices elsewhere and the number of first time buyers is a fairly good indicator that the economy is at last starting on the road to recovery.

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