A third of London sellers have reduced their asking prices
32% of properties in London have reduced their asking price this spring by an average of 7.5%, which is equal to approximately £57,000.*
The biggest price reductions can be found in the London borough of Kensington and Chelsea where there is a higher-than-average reduction of 7.6%, equivalent to £135,702 off the average asking price of a home in the area. Westminster is home to the next largest reductions, with properties here seeing an average reduction of 7.2%, or £124,144.
Further statistics revealed that 45% of all central London property sold in the first three months of the year had been reduced in price **. By way of comparison, this is up from approximately 25% in the same period of 2014. This increase shows that despite there being a shortage of available property, buyers are nonetheless price sensitive and are avoiding properties which are not competitively priced, whilst sellers are realising the need to have their properties correctly priced in today's market.
Buyers are still being cautious due to a combination of market uncertainty borne out of the current economic and political climate, and last year's stamp duty increases.
In recent years, buyers and sellers have expected a property market where house prices were nearly guaranteed to rise by up to 20 per cent in a year, but that is no longer the case. Reduced asking prices are, in part, a natural adjustment of a market which is catching up with a slower pace of growth than in recent years.
However, registered buyers are still up 2.2% and new property coming to the market in London is also up by 5.8% in the first four months of 2017. This is all good news for those looking to get onto the property ladder.