London real estate price falls as much as 8.5 years in January
According to Acadata research agency, the London residential buildings cost in January 2018 fell by 2.6% compared to the same period last year. At the same time, the biggest drop is observed in the UK capital most expensive areas: house prices fell by 12.2% in Southwark, and by 14.9% in Wandsworth. Compared to December 2017, the London residential property average price fell by 0.8% to 593,396 pounds ($ 822,000).
Maximum since August 2009, the real estate market’s fall is the result of accelerated inflation and fears about the future of the UK economy after the country leaves the EU. Weakness in house prices was observed throughout the year 2017, and in 2018 this trend continued.
According to analysts from Pantheon Macroeconomics Ltd, the Brexit associated risks will affect the UK real estate market until the end of London and Brussels negotiations. At this point, the parties can not agree on the trade agreement’s relative terms. According to experts, the duties introduction on the EU goods import will cost the British manufacturers about 27 million pounds a year.