Major drop in Tower Hamlets property value amid ‘delayed Brexit outcome’

Homes in Mile End, Tower Hamlets. Pic: Ayesha Rahman

House prices in Tower Hamlets have the second highest depreciation rate compared to all other London boroughs over the last year.

They suffer a price drop of -6.1 per cent, with a new house value of £559,475 on average.

Westminster faces the highest house price decline, with an annual change of -6.3 per cent.

According to Rightmove figures, London property prices were one of the worst performers in the UK, throughout the year.

These results came despite the annual spring price surge.

London is acting as a drag on the rest of the UK housing market, according to Jeremy Leaf, north London estate agent and former Royal Institution of Chartered Surveyors residential chairman.

He said: “The spring bounce is taking place, but not reaching to the heights we expected and certainly not in the capital.”

Several surveyors cited by the RICS said Brexit played a large role behind the price falls.

Steve Gadsby of Gadsby Nichols said: “Brexit is still the main issue causing market uncertainty”.

This is because buyers are waiting for “a Brexit outcome before commitment” he said.

The average value of property in Greater London has been dropped by 2.5% from the past year till May.

Two of London’s cheapest boroughs, Barking and Dagenham and Bexley were the only areas showing positive increase in London property prices.

However, value in the North and the Midlands are on the rise.

Wales’s value increased by 4%, West Midlands 3%, North East 2.6% and North West 2.1%.

Miles Shipside, director of Rightmove, said the increases outside of London are the result of a combination of strong demand, buyers’ affordability headroom, and a continuing shortage of suitable properties.

Rent prices have also been on a decline, as south-east England faces the biggest rent drop over the past year.

The Deposit Protection Service said rent had dropped by 0.64% (roughly £5) in the first quarter of 2019.

DPS said this may be positive news for renters concerned about affordability.

More statistics of annual/monthly value change by borough, is available on the Rightmove property website.

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