London property prices have grown at a slower rate than the national average in 2016 for the first time in 8 years said Nationwide.
The Average prices in London increased by 3.7% over the year, compared with the rise across the country as a whole of 4.5%. It’s the first time England has outperformed London since 2008.
“There are signs that London’s significant period of out performance may be drawing to a close. For the first year since 2008, annual house price growth in the capital was lower than the UK average,” said Nationwide’s chief economist.
The Capital remained the most expensive place to buy a home in 2016, with an average price in the Q4 being a whooping £473,073. The average price nationally was just £205,937 over the same period.
Nationwide said a small rise in UK house prices of about 2% next year was more likely than a drop, because of a shortage of homes on the market and low interest rates that would help to drive demand for mortgages.
Economists including the Bank of England have said that 2017 will be a tougher year for consumers with slower growth expected and a higher inflation and weak wage growth.
Nationwide have said affordability has improved in Scotland, the north, east Midlands and Northern Ireland over the past ten years. In London & the south of England, more people are finding themselves priced out of the market or having to borrow a greater multiple of their income to get on the property ladder.
First-time buyers are finding median loan-to-income ratios are highest in London and the south-east, at around four times their income; and lowest in Northern Ireland, at less than three.