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Press comment: House Price Index shows London bubble is finally deflating

But prices could still cause brain drain

16/01/2019

Gemma Harle - Press Releases

Managing Director – Mortgage Network

If you are covering the UK House Price Index for November released today, please see the following comment from Gemma Harle, Managing Director of Intrinsic Mortgage Network, part of Quilter:

“The House Price Index for November 2018 released today revealed that while house prices dropped marginally month to month they have risen by 2.6% since November 2017 with the average mortgage over the year also rising by about the same.

“The London bubble is finally deflating after years of growth, with terraced being the only form of housing not dropping in price over the past year. However, regardless of this drop first time buyers in the capital still face an uphill struggle to get a set of keys to their first home. Such vast differences in the regional cost of a home for this group will start to take its toll on London’s skilled workers moving forward.

“Research by estate agents Hamptons International last year found the proportion of Londoners ditching the capital to move up north has tripled since 2010. Cities such as Manchester are seeing an influx of people simply unwilling to fork out huge sums for a roof over their head and London’s grip might be loosening on Britain’s brightest and best. While it is natural that you would imagine prices to be higher in a capital city of any country it is frankly ridiculous that the average mortgage for someone in London is £210,937 more expensive than the rest of England.

“Overall the market is as you might expect it, if not slightly better considering the historic era we are living in. However, every day we move closer to a potential no-deal Brexit and there is no telling what that might do to house prices across the UK. The house price index come April this year might paint a very different picture of house prices across the UK.”

For more information contact

Alex Berry
02380 726260
07741 151931
alex.berry@quilter.com

Notes to editors

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

  • The Multi-asset business is now Quilter Investors
  • Intrinsic to Quilter Financial Planning
  • The private client advisers business is now Quilter Private Client Advisers
  • The UK Platform to Quilter Wealth Solutions
  • The International business to Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc. Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270. Registered in England.