Homebuyers looking for their dream property in the capital will be pleased to hear that the extortionate prices of London homes are slowly falling, having dropped by almost two per cent in October.
The latest Rightmove House Price Index reported that house values have dropped by 1.9 per cent, which means prices have increased by just 5.3 per cent over the last year .
This is lower than the national average annual price growth of 7.2 per cent, showing that the London property market has slowed at a faster rate than other areas of the country.
However, the average asking price for a home in the capital was £682,422 in November, which is still significantly higher than the national average of £366,999.
Rightmove’s director of property science Tim Bannister said: “The exceptional price growth of the last two years is unsustainable against the economic headwinds and growing affordability constraints.”
He noted this could encourage more people to consider buying a new property, who might have been deterred by the “frantic market over the past two years”, thanks to low interest rates and a shortage of homes for sale.
Recent hikes in mortgage rates, the cost-of-living crisis, and the possibility of rising unemployment could result in a drop in demand from homebuyers, which could subsequently lead to a fall in property values over the next few months.
Kim Kinnaird, director of Halifax Mortgages, said: “How this picture develops in the coming months will be a key determinant of house price performance into next year.”
If you’re looking for a new home, contact our estate agents in Cheam.