On average, London’s house prices have decreased by almost £10,000 since April 2016 whilst the rest of the country hits new record levels.
Rightmove’s latest house price index showed that property in the capital is coming to the market at a price 1.5% lower than twelve months ago.
Shocking at first, a closer look reveals the drop mainly happened due to a decrease of value for high-end properties in inner London. The rest of the capital showed resilience.
Overall, the last twelve months hit houses with five bedrooms or more the hardest, with an average drop of 7.3%. For all of London, the average asking price now lies at £649,772, almost £10,000 below the capital’s all time high.
The lower end and middle sector of the market proved to be more resilient. Prices for properties with a maximum of two bedrooms increased by 1.3% whilst homes located in the middle of the market experiences a minor price drop of 0.7%.
London is the only region that didn’t see house prices moving up this month. Every other part of Britain recorded an increase.
Miles Shipside, Rightmove director and housing market analyst, said: “The more discretionary upper end of the market is having to tempt buyers with cheaper asking prices, off-setting the higher purchase taxes in this sector.”
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He added:
“Demand continues to be strong, but at the right price for the right property.”
The Rightmove index concluded by stating the snap general Election will have very little impact on the overall market. With Shipman saying:
“Any slowdown in activity will be counterbalanced by the market’s current fast pace. Indeed, in locations where choice of suitable property is limited hesitation could mean losing out to others who still decide to act.”
