London house prices are showing an impact from the Brexit vote, while other areas of the UK appear to have shrugged off the vote. Hopeful home buyers, home movers, and landlords have been showing continued demand even as the supply in the housing market increases. Whereas, in London, buyers have been shy and are being cautious before jumping onto a new purchase.

While experts are putting blame on the Brexit vote, there is still the continued problem of affordability in London and other affluent areas. Housing prices remained consistently high throughout the recession in and around London and some experts believe that despite other issues keeping buyers away, this could be a natural correction to the market in those areas.

According to Hometrack, London had the weakest performance in the housing market out of the top 20 largest cities in the UK during the third quarter. The average house price in London grew only 0.9% to an average level of £480,500 in the three months to September. The decline is obvious when compared with the past three year average total of 3%.

It should be noted that London still has property values at a level of 10% higher than this same time last year. Annual growth by Hometrack was forecasted to be 5% for 2016.

Richard Donnell, an insight director at Hometrack, remarked, “In the immediate aftermath of the vote to leave the EU there was little obvious impact on the housing market and the rate of house price growth.

“Three months on and it is becoming clearer that households in large regional cities outside southern England continue to feel confident in buying homes and taking advantage of record low mortgage rates where affordability remains attractive for those with equity.”