Average London house prices fall by 0.4%
Average asking prices of homes in London have dropped by 0.4 per cent, a new study found.
Research from Rightmove’s House Price Index found that average prices have fallen in 12 boroughs since last January, though the average asking price for a property in the capital has gone up to £624,953 from last month.
Inner London boroughs have seen house prices drop by 2.1 per cent on average, with the largest decrease recorded in Kensington and Chelsea, where value fell by 14.6 per cent. This represents a drop from £2.5 million to £2.1 million.
In the outer boroughs, house prices saw modest rises, with Havering and Hillingdon showing price rises of 1.4 per cent. Slow growth and falling costs across the market mean that overvalued properties are now being ignored by buyers.
Over 80 agents polled by Rightmove described their local market as price sensitive and that putting the asking price too high had a negative impact on interest levels.
Miles Shipside, Rightmove director, said: “Perhaps we’re approaching the territory where many buyers are unable or unwilling to pay what sellers are asking, given the negative combination of rises in the cost of living, tighter lending criteria, and a dose of Brexit uncertainty.”
Mr Shipside went on to say that over-pricing can lead to a loss of initial interest and impetus, as buyers often have concerns regarding properties that are not sold as fast as others.
In the few years leading up to 2016, house prices were rising by up to 30 per cent annually and houses could be regularly overpriced and remain popular, but now it seems buyers need to wait two years or more to see extra value added to a house. This is because more buyers appear to be exploring the market and finding better options.