00:00This chart shows how much London house prices have relatively fallen compared to the rest of the
00:05country over the last few years. They're down 15% and within that apartments or flats are down over
00:1122%. What's really staggering is that one in seven people selling flats are doing so at a loss.
00:18What's driving the drop in London house prices is a raft of different negative factors from
00:22foreigners leaving because of non-domicile inheritance tax increases, Brexit may well
00:27be a factor but equally it's the cost of living in London has gone up far more. The median home in
00:31London requires 11 times the amount of earnings but better say under eight times for the rest of
00:37the UK. In May we'll have the Renters Rights Act. This will give more power to tenants and make it
00:43harder for landlords to remove them unless they're particularly badly behaved but it really will cost
00:47an awful lot more and take more importantly a lot more time for landlords to be able to manage their
00:52properties and that's making them want to sell up. So London is actually better value than it was
00:56particularly since the pandemic because what we've seen is the rest of the UK has actually risen
01:01quite noticeably and in fact is at all-time highs whereas London is tread water or even in fact
01:06reduced in price. At the same time it's just the cost of living has really impacted much harder on
01:11London. So at some point London is going to be good value again. It may already be if you've got a
01:15longer time frame and you're not looking to make money straight away and equally if you have a
01:20reasonable amount of money because London is still about 50% more expensive than the rest of the
01:25country. You've got to be earning more than that though to maybe be able to afford the cost of
01:29living in London but at the moment London house prices are cheaper but they're cheaper for a reason.
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