The average London house price has fallen by a further 1% in July to 245,017 from 247,703 in June but prices are 8% higher than they were this time last year, research from haart estate agents reveals.
Despite the predicted bounce back in activity post World Cup, rising activity
levels have been stifled during the hottest July since records began. The lower
level of property viewings has resulted in the average percentage reduction in
asking price rising to three. However, first-time buyers are continuing to show confidence in the market and are capitalising on the summer sale with first-time buyer levels rising to their highest in 12 months.
The summer dip in activity is requiring sellers to accept as much as a 4.8%
reduction in their asking prices in North London, where average prices are
higher than South East London.
Paul Smith, chief executive of haart estate agents, says: “As the hot
summer months cool down the activity in the property market, only the properties that are correctly priced are being snapped up. In this heatwave, people would rather be out at barbeques and enjoying the weather than shopping for houses.
“With fewer applicants viewing properties, sellers are often not in the driving
seat and should keep their prices keen to ensure a sale.”
First-time buyer levels are at their highest level in 12 months, having risen
2% in July to 28% of the market share as their confidence remains high.
Smith adds: “The temporary dip in the market and the drop in prices have encouraged first time buyers to return. For those who are closely monitoring the market and waiting for prices to match their budget, now is the time to hunt for a good bargain. Despite interest rates rising last week, the
selection of competitive mortgage deals currently available means that first
time buyers are more able to afford mortgage repayments.”