London has experienced three consecutive months of decline in its average house price, revealed the Office of National Statistics.
According to its findings, since August when London’s average house price peaked at £399,000 it has since declined to £388,000 by October. This demonstrates that London properties prices are coming into line with national house price activity. Like London, the national average house price has declined between August and October from £234,000 to £231,000.
Commenting on these findings, an independent buying agent said the decline is a combination of more realistic pricing by London based estate agents, and the increase in stamp duty by the Chancellor in March.
The agent said that while London drives the housing market nationally, like the rest of the country, its pricing must become more realistic in the difficult market. As a result, there have been reductions in prices on properties ranging from ‘high value, multi-million pound properties, down to entry level homes.’
However, while homes valued up to £1.2 million are being sold well, those looking to buy above the £2 million mark are being hit by the 7% stamp duty tax. In some cases this may be deterring people from applying to large mortgages for more expensive houses and instead looking for less expensive houses.
A drop in London house prices may therefore be an attempt by estate agents to keep would be buyers interested in purchasing a high value property in the capital.
