Sales agreed up on 2016 but largest June price fall for seven years
- Price of property coming to market drops by 2.4% (-£15,543) this month, the largest fall at this time of year since 2010
- Buyer numbers show some signs of recovery with sales agreed up by 3% compared to May last year
- Prices of newly marketed property still re-adjusting, with overall London year-on-year fall of 1.4% and Inner London’s 4.2% drop outweighing the 1.7% rise in Outer London
While June has seen three drops in the price of property coming to market in London since 2010, this month’s 2.4% (-£15,543) fall is the largest in that timeframe. Buyer activity remains subdued compared to the recent boom years, but there are some signs of recovery from last year’s lows with the number of sales agreed up by 3% on the same time last year.
Miles Shipside, Rightmove director and housing market analyst comments: “With some sellers setting more tempting asking prices, and many being open to further drops to secure a sale, there is a pick – up in buyer activity compared to the same time a year ago. It’s all pretty marginal, and is also confused by 2016’s statistics being distorted by the stamp duty tax hike last April , but is an indicator of some stability. In addition, while London lags behind all of the northern regions of the country, its year-on-year uplift in the number of sales agreed is greater than both the South East and East of England regions.”
Inner London continues to be the main price drag, with prices of newly-marketed property now down 4.2% compared to this time last year. This is in contrast to relatively more affordable Outer London where there has been a 1.7% year-on-year rise. The net effect is a 1.4% drop in London as a whole.
Shipside adds: “London and the adjacent South East region have seen average prices fall more this month than the rest of the country. London also remains the region with the biggest year – on – year fall. It now seems certain that we will have continuing political uncertainty, though some parts o f the country, especially the northern regions, seem to be coping with that inst ability better than the capital . Having said that , the historic under – supply of the right property at the right price and ongoing strong housing demand in London are evidenced by buyer enquiries to agents picking up to a degree after the surprise election result . They were 2% higher on the Monday after the election than the Monday before , showing that people are getting on with addressing their housing needs.”
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