London house prices were more resilient in 2023 than we had expected, falling by 2.4% y/y in Q4 close to the national average of -2.3% y/y.
London is more reliant on mortgaged buyers than other regions and the deterioration in affordability due to high mortgage rates was particularly severe there. So, a recovery in mortgage lending this year should allow demand in the capital to recover and we expect house prices to rise by 3% y/y in Q4.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services