Asking prices across London are being cut in order to draw sales

A number of vendors in London have moved to reduce the asking price of their properties by tens of thousands of pounds, with the housing market continuing to stall.

The most recent data from online estate agent HouseSimple.com indicates that 35.3% of properties on the market have seen a price reduction this month. This data is based upon Zoopla’s price reduction statistics for all 32 London boroughs.

Borough Cuts

45.8% of properties in the borough of Richmond upon Thames have seen price cuts –more than any other borough in the capital. On the other hand, Newham saw the lowest proportion of price reductions at 25.7%.

HouseSimple.com Chief Executive Alex Gosling, noted: ‘These figures only support the view that the London property market has run out of steam. Agents are dropping prices to persuade cautious buyers to purchase in an economic climate where it’s difficult to predict what’s going to happen next.’[1]

Mr Gosling went on to observe: ‘What’s unusual about the level of discounted properties is that It would suggest there are too many sellers and not enough buyers. But strangely this market is still suffering from a lack of new supply.’

‘There are actually plenty of buyers looking, but they’re a different buyer from 12 months ago. They are more cautious and viewing multiple properties before making a decision,’ he concluded.[1]

The table below indicates how all regions have performed in July, in comparison to February:

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/property-asking-prices-slashed-across-london-as-market-stalls