Prime Minister Theresa May could well face a static London property market if history is anything to go by, analysts at Stirling Ackroyd have found.
In an analysis of London house price growth under different prime ministers, Stirling Ackroyd found that although Margaret Thatcher and Tony Blair presided over rapid growth, May's reign could be marred by Brexit.
The London Estate Agents said that London house prices rose by 251 per cent and 209 per cent during Thatcher and Blair’s time at Numer 10, respectively.
Andrew Bridges, managing director of Stirling Ackroyd, said: “With great power comes great responsibility but there’s one thing the PM can’t control – London house prices.
Under Thatcher’s tenure, the property market was turned on its head – seeing dramatic house price growth in London. There’s always talk of spiralling house price growth in the capital but compared to the 1980s, the rate of growth is lagging behind.
“Even the boom years under Blair couldn’t keep up with this pace of growth. Under New Labour London’s property market reached new heights, and became a global competitor. As demand soared, so did prices. Places like Shoreditch became solid investments and a buy-to-let surge started, with those properties snapped up still returning a profit today.”
However, for recession prime ministers it has been a different story. House prices dropped cumulatively -1.4 per cent between Thatcher and the end of Major’s premiership. Likewise, Gordon Brown, who inherited a sharp global recession, also experienced negative growth of 0.7 per cent.
Bridges added: “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.
“If the pattern developing over the last 38 years is anything to go by, Theresa May could face a static London property market."