London property sellers have been doing what they can to secure buyers, including accepting offers nearly £30,000 below the asking price.
Whereas lots of properties on the market in the capital had been going to sealed bids over the last few years due to an influx of buyer demand, the opposite has now occurred, as sellers struggle to shift their homes.
Research from Zoopla revealed vendors dropped their prices by 5.5 per cent in February, which is the lowest discount since January 2019.
Executive director at Zoopla Richard Donnell was reported by the Evening Standard as saying: “Higher house prices means higher mortgage rates have a bigger impact on the buying power of households looking to buy and greater negotiation over asking prices.”
London remains the most expensive region to buy a property, with average values coming in at £524,800. In comparison, the most recent Halifax House Price Index reported the national average value was £281,684.
This is despite the annual growth rate being only 2.5 per cent in the capital, compared with 5.3 per cent nationally.
Mr Donnell noted that at the same time as price increases not being as high as the rest of the country, discounts in London have been greater. Buyers’ finances are already stretched due to the steep cost of houses in the capital, and high mortgage rates are making it even harder for people to get on, or climb, the property ladder.
Therefore, demand is falling, which means buying power is “starting to recover”.
Buyers who want advice on how to get keys to their own property should call our estate agents in Cheam, who can show them the latest homes and give them guidance on the market.