London Marathon property prices hit the wall

London Marathon property prices
London Marathon property prices

House prices along the route of the London Marathon have slowed spectacularly in the past 12 months - and are rising at half the rate they did a year earlier. But what does it mean?

See also: It could take you 27 years to save for a house deposit

See also: Buying a house? Don't forget these costs

See also: Most aspiring first-time buyers 'positive' over property ladder chances

Research from online estate agents found that average property prices along the route have risen just 2.6% over the past 12 months - less than half of the UK average.

Worst performing
St James's -1.8%
Embankment -1.2%
Canada Water -0.4%
Rotherhide 0.2%
Monument 1.7%
Blackheath 2.8%
Bermondsey 3.2%
Charlton 3.3%
Poplar 4.1%
Limehouse 4.3%
Isle of Dogs 4.3%

What does it mean?

The route takes in some particularly swanky areas, and some far less desirable ones too - and prices are struggling in both.

In St James's, we can see the issues facing the top end of the market. The average property here costs more than £2.4 million, and prices have taken the biggest knock of all - down 1.8%. The effect of higher stamp duty, and the uncertainty associated with Brexit, put a damper on prices. Previously sellers added an optimistic premium, because prices were rising so fast that they could get away with it. Without that momentum, the premium has come off the market.

Meanwhile, places like Poplar have come up in the world in recent years, and had seen price rises in existing properties, and pricier new developments built. However, they remain vulnerable to market sentiment, as in order to buy a former council property in a big East London estate at a large premium, you have to have faith that prices will continue to go up, and you will be able to sell up if you want to move on. As sentiment has suffered, prices have slowed.

It's an indication of the uncertainty in the London property market at the moment, which is why when pundits issued their predictions for this year many of them suggested a slowdown in London and price drops in super prime areas. Some even suggested small drops across the Capital.

However, the underlying shortage of available properties continues to underpin the market in general. While there are more buyers than properties, we are unlikely to see any dramatic falls even in London. So while Marathon property isn't looking terribly strong at the moment, anyone who is in it for the long haul, will come out on top in time.