House prices are ‘off the boil’
Just when you thought you could sell a gas meter cupboard in London for £350,000, ridiculously inflated house prices appear to have peaked. Put simply, prices have gone so high that nobody can bloody afford them – not even ludicrously rich oligarchs.
Rightmove has announced that far from soaring, house prices in England and Wales are at a ‘virtual standstill’ in June, despite going up by 3.2% in May.
In fact, some prices have been going DOWN. London’s prices have dipped by 0.5% this month, with other regions falling month-on-month.
Don’t start fantasising about a pied-a-terre in the capital, though – despite the drop, London prices are still up 14.5% on last year, and the average house sits at an eye-watering £589,776.
Why is it happening? Well, the reason is that people are putting more houses on the market, hoping to cash in on the boom, while buyers are exercising more caution due to worry about the possible interest rate rise (and the fact that stricter mortgage rules mean that they can’t actually afford to repay £589,776 in the first place).
Rightmove said: ‘Some sellers will be looking to cash in and possibly get a lot more house for their money further out, but they may have missed the peak in the rush to realise their gains as parts of London appear to have hit the upper limit price buffer.’
So will common sense one day prevail? Will we see an end to £140 million penthouses in Hyde Park? Will normal, regular people who don't own fur coats and crowns one day be able to buy in London?