Over a third of London property prices reduced
New research shows that over a third of properties currently for sale in London have seen prices reduced since they were first marketed.
A study from HouseSimple indicates that price drops on London properties went from 29.7% in February 2017 to 35.3% in July.
Earlier this month, and in keeping with this drop in activity, the Royal Institution of Chartered Surveyors (RICS) had already reported a record low in the numbers of properties for sale across the country, in June.
The HouseSimple research reviewed current listings in 32 London boroughs on property portal Zoopla, with Richmond upon Thames and Kingston upon Thames showing the biggest reductions at 45.8% and 45.3% respectively.
HouseSimple’s chief executive officer Alex Gosling suggested that the figures give credence to opinion that the London property market is slowing:
Agents are dropping prices to persuade cautious buyers to purchase in an economic climate where it’s difficult to predict what’s going to happen next.
"What’s unusual about the level of discounted properties is that it would suggest there are too many sellers and not enough buyers. But strangely this market is still suffering from a lack of new supply. There are actually plenty of buyers looking, but they’re a different buyer from 12 months ago. They are more cautious and viewing multiple properties before making a decision. Long gone are the days when buyers were diving in to avoid missing out as the market accelerated away from them.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.