Brexit costs home-owners thousands as London prices slow

House prices in London since the Brexit vote five years ago this month have slowed to such an extent that homeowners across the capital have actually lost value in their properties against inflation.

Hard times: London homes have lost value against inflation since 2016

According to Land Registry figures, in June 2016 the average price of a home in London stood at an all-time high of £468,120, having added more than £100,000 over little more than two years.

Back then, Croydon was the fourth least expensive place to buy among London’s 32 boroughs and the City, with an average house price of £325,000.

But Croydon was the third busiest borough for house sale transactions, with 5,705 properties changing hands in the three months from March 2016. Only Wandsworth and Bromley kept their borough’s estate agents busier at that time.

Now, though, the average value of a home in London is £491,687, an increase of just 5 per cent over the whole period. A 1 per cent per year increase is regarded as “glacial by London standards”, according to the Evening Standard’s weekly homage to the city’s estate agents.

According to RightMove, the average house price in Croydon in 2020 was £398,500 – 22per cent higher than in 2016, representing an increase of 5.6 per cent per year.

That’s good news for those who have moved to Croydon rather than other parts of London in that time, because since June 2016, inflation has averaged 2 per cent, meaning that for the majority of Londoners, the value of their homes has gone down in value in real terms.

Land Registry data is regarded by property analysts and economists as particularly reliable because, while its quarterly figures lag behind the breathless barometers of the housing market from estate agents and websites, it is always based on the hard data of actual completed transactions.

The Brexit effect on the London-wide market appears to have really kicked in in 2017, the result of depressed foreign investment and fears about future levels of employment. Since the Brexit vote, several large European banking and commercial businesses have decided to move their offices out of London.

The London market reached a peak with the average price of a London home hitting £502,195 in January this year, but as reported last week, house prices have begun to slip back since.  The London property market suffered its biggest monthly fall in a decade in April. The coronavirus pandemic has forced many to consider moving out of central London, seeking larger homes with garden space in the suburbs and country.


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News, views and analysis about the people of Croydon, their lives and political times in the diverse and most-populated borough in London. Based in Croydon and edited by Steven Downes. To contact us, please email inside.croydon@btinternet.com
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9 Responses to Brexit costs home-owners thousands as London prices slow

  1. Mike Tyrrell says:

    What a load of absolute nonsense. Brexit has nothing to do with it at all.

    • And your carefully researched evidence for such certainty is what, exactly?

    • Drossel says:

      Well, house prices soared in all continental european cities, therefore covid can definitely be ruled out as a reason for slipping prices in London. I know this truth is Hard to get across to a brexiteer. LOL

  2. penntm says:

    More to do with Covid than Brexit?

    • No. These are trends across five years, including four before covid. If anything, the housing market in London has improved over the past year, reversing the trend instigated by the Brexit vote.

  3. Grace Onions says:

    It is daft to think that house prices can keep on increasing forever – remember negative equity of aobu t20 years ago? It’s very similar to our global climate and ecological emergency – you simply can’t have infinite growth on a finite planet. Perhaps we would all be better off if the housing market helped first-time buyers properly instead of flinging everythign at property developers with the end result being houses/flats etc that local people just can’t afford.

    • The law of supply and demand continues to be infallible, Grace. The nauseating Tory mantra of “getting a foot on the housing ladder”, adopted by the Blairites and by the Newman council administration in Croydon, coupled together with various Tory government incentives for developers and the continuation of Thatcherite Right to Buy while reducing public resources to provide social homes for rent is what has fuelled the housing market for 30 years, especially in London and the south-east.

      Unless and until the heat is taken out of the private housing sector with super-provision of social homes for rent, that situation will remain, to the huge joy and profit of private developers and landlords.

  4. Chris Flynn says:

    Can anyone work out, how many years at this rate until housing becomes affordable?

  5. Good Brexit news for first-time buyers

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