Everyone knows that there is a housing crisis going on in London right now. The prices for both homes and rental units are sky-high and are forcing people to the brink of economic failure. However, one interesting development that Greycoat Real Estate has noticed this past year is that home prices are starting to fall just a bit. Is this a sign that the crisis is coming to an end? Or will 2024 be just as bad as this year?

Why Home Prices are Falling

To understand why home prices are falling, you have to understand why this mess started in the first place. Greycoat Real Estate watched as a huge influx of people moved back to London after the pandemic and drove up home prices. 

This made many unable to afford homes so they turned to the rental property market which raised prices there as well. Now with most people trying to rent, home prices have started to fall again, but there is a catch. And Greycoat explains why.

They say that even as the property market becomes a buyer’s market, prices still haven’t dropped to prep anemic levels. Even so, buyers can demand major discounts when buying homes which has left sellers in a bind even though they’re making record profits since most people are renting anyway. According to Greycoat, this is a whole new trend.

How Far Will Prices Fall?

The big question that Greycoat Real Estate wants to address is will home prices continue to fall next year and how far will they fall. Projections estimate that home prices will fall by around 5%. Once again, this is significant but does not put prices back to where they were before the pandemic. Will the London housing market ever get back to normal? Greycoat Real Estate knows that only time will tell.