London house-price Bubble POPS! At 5 yr lows with luxury areas leading the declines

Bloomberg reports:

Kensington and Chelsea led declines among the capital’s most expensive areas.

London home values grew at their slowest annual rate in almost five years in February as values in the capital’s most expensive boroughs including Camden and Kensington and Chelsea fell, according to Acadata and LSL Property Services Plc.

Prices across the city rose just 0.1 percent on the month to an average 606,780 pounds ($760,000), the groups said in a report on Tuesday. That left the annual gain at 1.5 percent, the weakest reading since April 2012.

The data add to evidence that London’s housing market is increasingly split along value lines, with the capital’s most expensive areas posting declines and the lowest-priced gaining. In February, the city’s top 11 boroughs by value saw prices fall by an average of 0.5 percent on the month, while the least expensive 11 recorded a 0.4 percent increase, Acadata and LSL said.

Kensington and Chelsea, the capital’s costliest borough with an average property price of about 2 million pounds, led the declines with a 2.6 percent drop as the tentative recovery at the top-end of the London market “appears to have fizzled out,” the report said.

According to national data for March, prices in England and Wales rose 0.5 percent from February to an average of 301,280 pounds, 3.3 percent higher than a year earlier, the report showed. Greater London has fallen from first to ninth for home price growth among regions in England and Wales from nine months earlier.

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