House prices in the capital are falling, and have dropped by an average £28,000 in the last month alone, as experts warn of a property-led downturn in investment affecting the economy next year.
According to Rightmove, prices fell by £20,000 a week in Kensington and Chelsea last month, as well as by over £10,000 a week in Hackney. In Kensington and Chelsea, the average asking price fell from £1,653,696 a month ago to £1,572,814. In Hackney, prices fell from £473,377 to £425,007.
Nationwide, house prices fell by 3.2% in the four weeks to mid December. However, prices in London fell more sharply, by 6.8%. Rightmove suggests the reason for the downturn is that buyers are now reluctant to take any risks with the current market climate, though it does say that the introduction of Home Information Packs (HIPs) for smaller properties last week may have distorted the figures.
House prices fell in most of England and Wales last month, but more dramatically in London and the South East, where growth has previously been the strongest. Rightmove’s figures are based on asking prices only so, while they may give an indication of market trends, they don’t necessarily reflect the true state of house prices.
Rightmove’s report also cautioned that the UK property market is now in ‘uncharted territory’ as mortgage lenders are currently having more difficulties raising funds, so new mortgage approvals may well fall this year.
If you are having difficulty selling your house in the current climate, then a quick house sale to Molae may be the solution. Molae typically pays 80-85% of the market rate, but you will avoid paying estate agent and other fees, and a sale can be handled much more quickly.