London House Price Trends from Rightmove

21 November 2018  |  Admin  |  0 Comments

Rightmove have published the latest information regarding housing prices in London. Here's is the what's been happening this month.

New seller numbers dwindle as Christmas price slowdown comes early

  • The price of property coming to market in Greater London falls by 1.7% (-£10,793) this month, and whilst it is the norm for new sellers to ask lower prices at this time of year, this is the largest November drop since 2012
  • Outer London sees modest seasonal fall of 0.8%, whilst Inner London drops 2.5% as seasonal volatility starts to kick in with reluctance to market among owners of more expensive properties
  • New seller numbers 9% fewer overall than same period a year ago – and 26% down in Zone 1 perhaps postponing marketing until more Brexit certainty or prices recover
  • Annual fall of 2.4% (-£15,280) reflects a minor drop in Outer London (-0.1%), while larger falls in Inner London (-4.3%) are exacerbated by Hackney (-4.9%) and Lambeth (-6.8%) re-adjusting after 80% trough to peak price rises

 


The price of property coming to market in Greater London falls by an average of 1.7% (-£10,793) this month. It is usual for new sellers to ask lower prices at this time of year as buyers are increasingly distracted by the run-up to Christmas. However, this is the largest drop in the month of November since 2012.

Miles Shipside, Rightmove director and housing market analyst observes: “New sellers who come to market at this time of year do not normally lower their price sights as soon or by as much as this. The pre-Christmas price slowdown seems to have come early this year, which gives buyers extra negotiating power to pick up a cheaper deal. With 9% fewer new sellers coming to market compared to the same period a year ago, it appears that those who are less willing to price down are staying off the market, perhaps until there is more Brexit certainty or prices recover. Meanwhile those who are taking the plunge are recognising that they need to price lower to sell.”

Outer London sees a modest seasonal monthly fall of 0.8%, whilst Inner London’s drop of 2.5% is exacerbated by fewer high-end properties coming to market. Indeed there are 26% fewer new sellers in Transport for London’s Zone 1 compared to the same period last year.

Shipside adds: “With properties coming to market at an average asking price of £1.3 million in Zone 1, it is likely that property owners there have more financial scope than those in cheaper boroughs to postpone marketing until they judge it a better time to sell.”

The annual fall of 2.4% (-£15,280) reflects a minor drop in Outer London (-0.1%). There is a much larger drop in Inner London (-4.3%) which is exacerbated by Hackney (-4.9%) and Lambeth (-6.8%) having the largest year-on-year falls of London’s 32 boroughs.

Shipside observes: “London’s highest rising boroughs during the boom that started in 2011 included Hackney and Lambeth, which are outside the prime areas of central and western London but are still relatively expensive. Both saw trough to peak increases of circa 80% in new seller asking prices so it is no surprise that they are susceptible to larger re-adjustments after such stratospheric boom-time rises.”

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