+++ P.O. (BBG) London House Prices Are Dropping at the Fastest Pace Since 2009


…As expected and should fall much much more.

…London is sky high priced and should not be, as a place to attract entrepreneurs and investors.


(Bloomberg) — London house prices are falling at the
fastest pace since the depths of the recession almost a decade
ago, with the capital’s most expensive areas seeing the biggest
Average prices fell to 593,396 pounds ($820,000) in
January, an annual decline of 2.6 percent that’s the biggest
since August 2009, according to a report published by Acadata on
Monday. London’s highest-priced boroughs were the biggest
losers, led by Wandsworth’s 14.9 percent slump and a drop of
12.2 percent in Southwark.
London prices fell 0.8 percent in January alone, equivalent
to almost 5,000 pounds, showing the weakness that was present
for much of last year continued into 2018. The market has been
hurt by slower growth and faster inflation since the Brexit
vote, while the Bank of England has signaled it needs to
continue raising interest rates.
The capital dragged down nationwide growth in February to
0.5 percent, Acadata said. Even excluding London and the
southeast, the 2.5 percent annual rate of increase in January
remained well short of the almost 7 percent growth seen as
recently as 2016.
The housing slump may also be weighing on consumer
spending, which fell for the ninth month in 10 in February
according to a separate report by Visa. Households spent the
least on recreation since 2010.