London Property Slide Worsens With Biggest Drop Since 2009

April 2, 2019

3.8% fall y/y in Q1, the seventh straight decline in values – Nationwide
– Nationally, U.K. real-estate market remains ‘subdued’
– Some of the weakness relates to Brexit as economic uncertainty impacts sentiment

London continued to lead the U.K.’s weakening property market at the start of 2019, with prices falling the most since the financial crisis a decade ago.

Nationwide Building Society said Friday that values in the capital dropped 3.8 percent year-on-year in the first quarter. That’s a seventh straight decline and leaves London as the worst-performing region in Britain.

Some of the weakness relates to Brexit, which is having an impact on sentiment. Consumer confidence remains close to its lowest level since 2013, according to GfK.

The Bank of England said on Friday that mortgage approvals dropped last month. Business investment fell for a fourth quarter at the end of last year, the statistics office said in a separate report.

The uncertainty over when and how the U.K. will leave the European Union has gotten worse this month as the government extended the deadline, having so far failed to get lawmaker approval for its exit deal. Still, a shortage of homes, record employment and low interest rates are preventing an even sharper downturn in the property market.

Nationally, property values rose 0.2 percent in March from February. The annual rate of change improved to 0.7 percent from 0.4 percent, though Nationwide said the market remains “subdued.”

Courtesy of Bloomberg

Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

In 1934 President Franklin Delano Roosevelt devalued the dollar by raising the price of gold to $35 per ounce.

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