London house prices will be static in Theresa May’s (pictured) tenure as Prime Minister after her predecessor David Cameron experienced a boom, Stirling Ackroyd has suggested.
Former Prime Ministers Margaret Thatcher and Tony Blair oversaw London’s greatest house price booms but in between John Major and Gordon Brown, who were in charge during recessions, both saw prices fall by 1%.
With Cameron in charge London prices rose by 53% from £332,720 in 2010 to £507,880 in 2016.
Andrew Bridges, managing director of Stirling Ackroyd, said: “If the pattern developing over the last 38 years is anything to go by, Theresa May could face a static London property market.
“The city’s property sphere has been pushed to its limits with new legislation and political events in the last.
“Buyers in London have paid the price under Cameron’s leadership. House prices started rising swiftly again and despite a return to strong economic growth, affordability has become the number one issue for Londoners.
“Once again the supply of homes could not keep up with demand and economic growth.”
But he added: “There’s a new advantage – London’s property market is more resilient – and probably the safest real estate investment globally.
“The comparisons of May and Thatcher have already begun – but London’s property market can be tamed by no one.”
Under Thatcher’s tenure prices in the capital rose by 12.1% per year from £31,370 in 1979 to £110,110 in 1990, an increase of 251% in 11 years.
When Blair took office in 1997 London property prices averaged at £108,620 before rising to £335,040 in 10 years, with yearly growth of 11.9%.
Major was in charge from 1990 to 1997 and Brown from 2007 to 2010.