00:00This chart shows how much London house prices have relatively fallen compared to the...
00:05...the rest of the country over the last few years. They're down 15% and within that apartments...
00:10...flats are down over 22%. What's really staggering is that Warren said...
00:15...seven people selling flats are doing so at a loss. What's driving the drop in London house prices?
00:20Is a raft of different negative factors from foreigners leaving because of non-domicile...
00:25...inheritance tax increases. Brexit may well be a factor. But equally it's the cost of living in London.
00:30The median home in London requires 11 times the amount of earnings...
00:35...pair to say under eight times for the rest of the UK. In May we'll have the Renters' Rights Act...
00:40...this will give more power to tenants and make it harder for landlords to remove them.
00:45They're particularly badly behaved but it really will cost an awful lot more and take more importantly a lot more...
00:50...time for landlords to be able to manage their properties and that's making them want to sell up.
00:54So London...
00:55London is actually better value than it was particularly since the pandemic because what we've seen is...
01:00...the rest of the UK has actually risen quite noticeably and in fact is at all-time highs.
01:04Whereas London has...
01:05...spread water or even in fact reduced in price. At the same time it's just the cost of living as...
01:10...really impacted much harder on London. So at some point London is going to be good value again.
01:14It may already...
01:15...if you've got a longer time frame and you're not looking to make money straight away...
01:19...and equally...
01:20...if you have a reasonable amount of money because London is still about 50% more expensive...
01:25...than the rest of the country. You've got to be earning more than that though...
01:28...to maybe be able to afford the cost of living in London.
01:30But at the moment London house prices are cheaper but they're cheaper for a reason.
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