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London Property Market 20 May 2016

Chestertons Residential Observer Monthly Edition - May 2016

Sellers cutting asking prices to secure a deal

People are lowering the asking price on their homes by almost a third in some parts of London in order to get a sale. According to the latest analysis by online portal Zoopla, around 29% of properties currently listed on the site had had their price lowered since the start of the year, with sellers typically offering a £25,000 discount to achieve a sale. A third of all homes listed in Kensington & Chelsea, where London's highest prices are found, had been reduced, and by an average of £137,421.

Getting online is home-movers' number one priority

One in five people moving into a new home would prioritise broadband over water or gas. According to research, 67% of new homeowners admitted to not buying a house because the broadband service in the area was poor.

Almost quarter-of-a-million sales collapsed in 2015

Around 221,000 house purchases fell through in the UK last year2. In just under half the cases thwarted buyers blamed conveyancing delays for the failure to complete. Damp rises to top housebuyers' deal-breakers list A new study3 has revealed the top 20 deal-breakers for home buyers. Almost three quarters (71%) of those surveyed said evidence of damp would put them off buying, while nearly two-thirds (65%) said they would generally avoid homes that had been poorly maintained.

Financing the bank of mum and dad

Mortgage lenders are raising the upper age limits at which they will offer mortgages. Nationwide recently increased its borrowing age limit from 75 to 85, trumping Halifax, which also recently extended the upper limit at which borrowers can pay back their mortgage to age 80. Lenders are reacting to growing demand from older homeowners seeking to help their children raise a deposit to get on the property ladder – a separate international survey4 indicated more than 12% of retirees still provide financial support to their adult children, and of those 27% had helped their children raise the deposit to buy a home.