Average asking prices for houses in London are less than the national average for the first time in the past six months, which may be a sign that the house price boom is nearing its end.
The average house price rose by 0.8% nationwide this month, while London’s property prices rose by just 0.7%, with over half of London boroughs seeing a fall in asking prices, including Hammersmith and Fulham.
Nationwide, average asking prices reached £239,317, a new high, as homeowners and trying to sell houses quickly before the introduction of Home Information Packs (HIPS). Estate agents reported a 10% rise in the amount of properties listed.
Miles Shipside of Rightmove told the Telegraph:
“The rush to beat the impending HIPs deadline appears to have attracted some poorly motivated sellers to the market. They are chancing their arm at some fairly bullish prices considering there is now a lot of property up for sale.”
Homeowners looking for a quick property sale may be forced to drop their asking prices, as supply is now at its highest for two years, and buyers will have more choice than before.
While many of London’s areas have seen a slowing down of house prices, the more expensive properties are still seeing significant increases. For instance, asking prices in Kensington and Chelsea rose by 3.4% last month, and 72.7% annually.
The highest monthly rise, of 7.4% was in Camden, while Southwark had the biggest drop in asking prices, at 2.8%.