Prospective homebuyers in London are still being faced with a lack of properties coming onto the market, as supply continues to decrease, pushing prices even higher.
The average asking price of a home in the capital has risen to a record high of £630,050, increasing by 1.6%, or £10,047, in just one month, according to Rightmove’s latest House Price Index.
In the east London borough of Tower Hamlets and southern district of Merton, sharp growth has driven average asking prices up by over £50,000 in a month.
Although demand from buyers is still rising, the latest price growth reflects a decline in the amount of homes being put up for sale, with 16.2% fewer properties coming onto the market this month compared with October last year.
The study also found that just four out of 32 boroughs – Richmond, Hillingdon, Hackney and Newham – saw an increase in property supply this year.
Director and Housing Market Analyst at Rightmove, Miles Shipside, says that the latest data “highlights London property owners’ financial resilience and determination to be able to choose when to sell, being acutely sensitive to time their moves and to make the most of their very valuable property asset”1.
As the capital is experiencing more hopeful buyers and fewer properties, homes that are put up for sale at a good price are selling very quickly.
Jo-Anne Neighbour, of estate agent Savills, comments: “Buyers are very clued up on what represents value and can easily spot an asking price that is out-of-line.”1
Are you searching for a home or property investment in the capital? If so, what kind of market are you witnessing?