The London housing market appears to be slowing down with prices dropping in several boroughs in the first half of the year. New figures from Zoopla have revealed that four areas of London have seen dramatic price reductions.
The latest House Price Index shows average prices across the UK have fallen by 1 per cent since last October. Prices may be falling, however, demand continues to improve with the most affordable areas led by Scotland, Wales, the North East of England and London continuing to see above-average demand.
However, four boroughs are blueprinting the downturns, including the City of Westminster, Hammersmith and Fulham, Kensington and Chelsea and Tower Hamlets. The latter had an average decrease of £350 in the past six months, meaning properties are selling for around £482,100.
Meanwhile, Hammersmith and Fulham dropped by £550 down to an average sale price of £731,100. Leading the way as the most expensive borough to buy in at an estimated £1,189,400, Kensington and Chelsea saw declines of £6,620.
But it was the City of Westminster where house prices dropped the most since October, with properties selling for £962,600, a figure down by £12,170 in just six months. Demand for homes is well down on this time last year but at its highest since October as falling mortgage rates and a strong labour market support buyer interest.
Commenting on the latest report Richard Donnell, Executive Director at Zoopla says, “The housing market is arguably more balanced than it has been for more than three years. Levels of supply have recovered and buyers and sellers are not miles apart on where they see pricing and this means deals are being agreed at an increasing rate.
"Prices are drifting lower compared to a year ago but fears of a major downturn in prices are overdone. Falling mortgage rates and a strong labour market are supporting activity levels from committed movers who need to be realistic on price if they are serious about moving home in 2023. We expect to see levels of activity continue to steadily improve over Easter and into the summer and H2.”
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