According to this article from the Guardian it discusses that all over the UK including London are experiencing a current drop in house price values with London dropping 1.7% in September alone.
They discuss that according to the Nationwide building society prices overall fell 0.2% in September across the UK.
Howard Archer, the chief economic adviser to the EY Item Club, said: “With the economy largely struggling and the outlook highly uncertain, we suspect that house prices will remain soft in the near term at least.”
According to the Nationwide house price index, prices fell most in London and the south-east, sliding at an annual rate of 1.7% in the capital to drag down the national average.
Another article from the Financial Times discusses one particular part of London who has experienced difficulties:
Occupying the northernmost quarter of Hackney in east London, “Stokey” has for decades attracted young professionals priced out of nearby Islington and Camden. They have driven up local property prices. Between 2009 and 2017, the average price paid for a house in Stoke Newington increased by more than 68 per cent in real terms, peaking at just over £1.1m, according to LonRes using Land Registry data. In 2013 alone, house prices jumped 25 per cent.
Prices have dropped since, however. In the first quarter of 2019, house prices were 8 per cent down year-on-year. Flat prices dropped even more, down 12 per cent over the same period.
“People have woken up and realised that just because there is a Whole Foods in Stoke Newington, that doesn’t mean it is Islington,” says independent buying agent Henry Pryor.
“Everything looked great for Stoke Newington: it was following a similar trajectory to Hoxton or Shoreditch,” says Pryor, but tax reforms — including the withdrawal of mortgage income tax relief and the imposition of a 3 per cent premium on second homes — killed demand from buy-to-let landlords. “People only buy in Stoke Newington if they think they are getting a bargain or if investors can get a yield that is over 5 per cent. It is a perfectly good area,” he says. “But why buy today if you think it will be cheaper tomorrow?”
With almost 1 million house owners still in negative equity, (this is when mortgage debt is worth more than the value of your home). If you’re affected by this, there are options available to you.
Negative Equity UK is the market leader in providing solutions to negative equity problems.
Since 2013 we have helped thousands of clients with their negative equity issues. In those six years, we have helped clients resolve their negative equity dilemma, enabling them to move on with their lives.
We are currently the only company in the UK that is authorised and regulated to offer you all of the available solutions under one roof. Our service is 100% confidential, our average write off is over 75%, and our success rate 96.67%.
There are a number of potential solutions to your negative equity problem and you can discuss any of the options available in a no obligation consultation with one of our qualified advisors on 0161 660 4403.
Can I get another mortgage if I am in Negative Equity?
Many clients are worried about interest only terms running out. In most cases they have no way to repay the mortgage balance at the end of the term. When this problem is debt to negative equity it can be very stressful. We re-negotiate mortgage terms for clients every day.
This can involve:
- Securing a better rate where possible
- Extending the mortgage term (on interest only, repayment, or a combination of both based on affordability)
We have been able to secure better terms for clients even when the lender has previously refused. This is because some lenders’ standard policies do not comply with the FCA’s Mortgage Conduct of Business and Rules and can be challenged.
You may have obtained a mortgage or loan product at a time when lending rates were much higher. Currently, rates are at an all-time low and a new mortgage or loan may be more affordable.
If you are looking for a negative equity remortgage we can provide a quick and affordable alternative to a debt settlement solution, meaning that you don’t need to sell and your credit rating remains intact.
And what protection will you have if you use CD Fairfield?
The protection you have as a customer of CD Fairfield is that we are authorised and regulated by the Financial Conduct Authority for all our work in the UK. This means that we are submit to stringent regulation and reporting measures, as well as clients having access to the Financial Ombudsman Service if they are unhappy. You have total peace of mind about the work we do.
Speak to one of our qualified experts today on 0161 660 4403 to see what Negative Equity Solutions we can offer you.