House prices in London fell in May, according to the latest data, dropping to just below the previously recorded all-time highs.
Overall in the UK, property prices increased by 10 per cent in the year to May 2021, as buyers rushed to take full advantage of the stamp duty holiday that concluded at the end of June, reports The Guardian, but in London, property values fell by 0.65 per cent, to £497,948.
House prices in the capital are only around £7,000 less than the previously recorded high of £504,384 in March this year, but they are still £17,000 higher than the average prices in London from before the lockdown in March 2020.
This equates to a steady rate of increase of 5.2 per cent, but it is still the lowest rate of growth of any region in the UK for the sixth month in a row, according to figures from the Land Registry.
However, eschewing predictions that the market is slowing down, experts are saying that the London property market will ‘burst back into life’ once the city fully reopens, despite the stamp duty holiday being phased out.
Estate agents say they are seeing signs that the market in London is recovering and that they are expecting a busy summer, despite the phasing out of the stamp duty holiday.
One estate agent said: “London rising the least will see it fall the least as the stamp duty froth comes out of many parts of the UK property market.
“The London property market could have the last laugh.”
It has been suggested that despite the withdrawal of the stamp duty holiday, as people continue to work from home, there will still be a demand that will drive the market throughout the second half of 2021 and beyond, according to property market experts.
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