The average asking price for a house in London fell by almost £10,000 in December but investors still enjoyed significant increases over the year, a report has suggested.
Homeowners in Greater London listed their properties at an average of £434,871 in December, down 2.2 per cent on last month’s asking price of £444,724, according to Rightmove’s House Price Index. Average asking prices across England and Wales have dipped by 2.7 per cent to £225,766.
Hounslow was the best performing London borough, where the average asking price went up by 4.5 per cent in the month to reach £518,968, while Newham (up 1.8 per cent), Merton (up 1.6 per cent) and Barnet (up one per cent) also experienced increases.
Average asking prices dropped by 4.6 per cent in Brent and Croydon, where the average listed value fell to £606,122 and £269,523 respectively, the figures have shown.
Despite the monthly fall, residential property investors will be pleased with the capital’s performance over the course of 2011. The average asking price for a house is 6.4 per cent higher than December 2010’s rate of £408,789.
The South West is the next best performing region in England and Wales, with asking prices going up by 2.2 per cent over the year, while properties in Yorkshire and Humberside are listed for 3.6 per cent less than this time last year.
The report noted significant variations in asking prices within regions depending on local circumstances. Rightmove director Miles Shipside urged those thinking of buying a house to research micro-market factors before making a purchase.
Shipside said: “It is clear that in these turbulent times the UK housing market is made up of many fragmented micro-markets that are performing very differently. Those that are involved in buying or selling next year need to understand their local market dynamics to help them deliver the right recipe for success.
“That will include gauging under- or over-supply of property types, buyer demographics and mortgage profiling, unemployment concerns and exposure to public sector cuts or the likelihood of external investment.”
London’s highest average asking prices can be found in Kensington and Chelsea, where the average property was listed for £1,956,710 in December. The typical asking price is also over the £1m mark in the City of Westminster, with homebuyers being asked to fork out £1,329,863 for the average house.
Houses are on the market at the lowest rate in Bexley, with buyers asked to find just £208,841 to purchase the average property.