London house prices fell the most since the beginning of the year in June

New stats show

This month’s new-to-the-market sellers have on average priced their properties 0.9 per cent (-£6,009) lower than those that came to the market last month. The annual rate remains in negative territory, with prices 1.0 per cent cheaper than a year ago.

Miles Shipside, Rightmove director and housing market analyst comments: “This month sees the largest fall in the price of property coming to market since January, as new-to-the-market sellers recognise that the traditionally busier spring selling season is drawing to a close.

The end result is that for the tenth consecutive month new sellers in London are marketing their properties at cheaper average prices than a year ago. London’s monthly fall of 0.9 per cent and annual decrease of 1.0 per cent is in contrast to the national average monthly rise of 0.4 per cent and the national annual increase of 1.7 per cent in new seller asking prices.”

London has 16.4 per cent more available inventory than at this time a year ago, fuelling a buyers’ market in some areas. The number of sales agreed by estate agents in May was 5.0 per cent down on May 2017 – though this downturn is less severe than the year-to-date average of 6.5 per cent down on
the same period in 2017. This slight improvement compared with the year-to-date average might indicate that the fall in sales numbers is starting to bottom out. However, with the normally quieter summer holiday months approaching, selling conditions will remain challenging.
Sellers would be well advised to take frank advice from an experienced estate agent who is familiar with local market conditions.

Shipside notes: “With the normally more active spring buyer market over and with some potential buyers likely to be distracted by summer holidays and World Cup-itis, the goal posts have just moved. Sellers in locations that have seen larger percentage increases in the number of available properties will have to price lower than properties they are competing against, as there are few better tactics than a bargain price to tempt buyers.”