Unsold finished homes are at record highs.
The depressed state of the London market is shown by the 50% surge in unsold, finished homes. These now total over 2,300 homes. And its not just in the more expensive center of the City. The area with most unfinished homes is Wandsworth followed by Croydon.
This undoubtedly reflects:_
- the retreat of foreign buyers,
- general uncertainty about the outlook of Brexit; and
- the general unaffordability of homes in the capital.
It now takes the average Londoner 14.5 times their annual pay to buy a property, the highest ever multiple on record.
Many London developments were sustained by buyers from Asia and the Middle East. This source of investment in the London market became controversial. It began to dry up as stamp duty on foreign buyers sharply rose.
Asking prices across the UK fell for the first time in October with a general decline of 0.25. This was better than the sharp decline in London of 2.4% with the biggest falls of up to 6.9% in central London. The average house in central London fetches an eye watering £1.3m.