Property over £1.5 million in London is dropping in price as world markets go into turmoil
House prices in Londons most expensive boroughs including Kensington and Chelsea, City of Westminster, Camden, Hammersmith and Fulham, City of London and Camden have droped 14.4% in the 12 months to November 2015 according to the owners of the Estate Agents Your Move and Reeds Rains. The average price of property in these areas is now £1.38 million.
However cheaper properties in other other areas of London are seeing large price increases for example Hillingdon grew 18% with an average price of £465,330 and Richmond-upon-Thames grew 16.2% with an average price of £906,934. 12 of 20 outer boroughs have seen double digit growth with price increases rippling out from the center.
Prime property is more effected by external world factors and prices have been driven up by foreign investors looking for a place to invest money such as London prime property. However with oil prices at a 13 year low and dipping below $30 a barrel, Chinas economy slowing, UK FTSE 100 stock market down 15% in the last 6 month and at the same level as 5 years ago. Also the Shanghai Composite Index has fallen 23% since the beginning of 2016.
London has become a tale of two cities, a prime market for investing which is dropping, and the second where real Londoners are living and house prices are growing due to high demand and lack of supply.