City of London house prices fall by £115,000 because of pandemic

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House prices in Central London have fallen drastically in the wake of the pandemic.

In the City of London, house prices had dropped by £115,172 in June this year.

Prices in the historic borough dropped 13.2 percent from £871,336 to £756,164, according to figures from the Office for National Statistics (ONS).

In London, the average home cost £510,299 in June this year.

That was 6.3 percent higher than the average cost of £479,969 in June last year.

Bank of England analysis reported ongoing strong demand for housing across most of the UK in the quarter to June and a shortage of properties for sale, which pushed up prices.

City of London has said it is planning to create at least 1,500 new homes by repurposing offices and other buildings left empty because of the pandemic.

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The borough intends to increase the number of homes in the centre of London by 20 percent by 2030.

Other central London boroughs that saw prices drop were Westminster, Hackney, Kensington and Chelsea, and Southwark.

House prices dropped by 7.9 percent in Westminster while prices in Kensington and Chelsea were slashed by £100,000, a 4.8 percent reduction.

Across the UK house prices soared and the average house price increased by 13.2 percent in the year to June, the largest percentage increase since November 2004.

UK average house prices reached a record high of £266,000, up by £31,000 compared to this time last year.

The only area of the country outside of London to see falling prices is Na h-Eileanan Siar in Scotland.

The ONS also showed Britons are now opting for homes with more space following months of lockdowns.

Prices for detached homes in the UK rose 15.6 percent in the year to June, with a 13.5 percent rise for semi-detached, and a 14 percent rise for terraces; however, flats only saw prices rise by 8.4 percent over the year.

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