In the capital, the number of agreed sales on properties were on the rise this month, the Evening Standard has reported, however, the asking prices on homes has dropped considerably, with market experts suggesting that buyers and sellers may be meeting in the middle.
The article highlights that there were prior indications that the expectations of both buyers and sellers were almost in unison this month as the homes being sold in London had gone up by 3% compared to May 2016. This may be in part to sellers becoming more aware of what buyers want and setting realistic asking prices in order to secure a swifter sale. The real estate company Rightmove provided figures to signify this trend, revealing the biggest year-on-year drop in asking prices at this time of year since 2010 has been reflected in the unstable housing market, with the monthly drop of more than £15,500, or 2.4% has left the London average above £634,000. Within Inner London, the prices for the most expensive properties had also decreased, even though homes usually costing around £800,000 continuing to see the biggest falls of 4.2%.
The Head of Research at estate agent Strutt & Parker, Stephanie McMahon, remarked: ”It doesn’t come as a massive surprise to see the drop in Inner London figures over the past year as the markets have been adjusting to stamp duty changes alongside political volatility.” The effects of the stamp duty hikes are still being felt in the housing market, and this drop in asking the asking prices on properties has been another sign. However, this fall has primarily been seen in the capital over a course of several months, with the rest of the UK seeing a continuous rise.
Research revealed a growth in prices in all 12 of the cheapest boroughs in London, where the average asking price is below £500,000. Barking and Dagenham, in east London, boasts the cheapest property prices, with the average price at £308,000, up 2.8% in a year. In the south-east boroughh of Bexley, prices rose 4% to £376,00, as a burgeoning interest in riverside properties are being extensively developed. Greenwich, which neighbours upmarket Blackheath and up-and-coming Charlton, observed a rise of 8.1% from last year, with the average asking price reaching £483,000.
The capital has seen the most volatility in the housing market compared to the rest of the UK, and this happens to be another indication of a trend being created by changes made to the market by the last and current administrations of the UK government. We await to find out what other trends are forged by the problematic economic climate.