London House Prices: Sellers Slash £20k Off Asking Prices in Bid to Secure Sales

According to the latest report from Zoopla, property sellers in London are offering significant discounts on asking prices, with reductions averaging £19,500, signaling potential challenges for house prices in the capital.

In March, sellers in London accepted an average discount of 4.6% from the asking price, a slight improvement from the 6.1% discount recorded in November. However, persistent discounts indicate lingering caution in the capital's property market despite some signs of recovery.

The report also highlights a notable increase in supply, with an eight percent rise in the number of homes listed for sale in London.

Richard Donnell, executive director at Zoopla, noted that rising wages and declining mortgage rates have bolstered consumer confidence, leading to increased housing market activity. However, he cautioned that while house prices are declining at a slower rate, it remains a buyer's market with ample housing options available.

Donnell emphasized the importance of realistic pricing by sellers to capitalize on improving market conditions and facilitate successful sales and moves in 2024.

Similar trends of narrowing asking prices were observed across the UK, with sellers accepting a median average discount of £10,000, down from £14,250 in November.

Annual house price inflation across the UK also experienced a slight decline of 0.3%, with London seeing a 0.4% decrease, bringing the average home price in the capital to £534,000.

Zoopla anticipates that current pricing trends will persist into the second half of the year as prices continue to adjust to higher mortgage rates and reduced buying power.

Despite challenges posed by mortgage costs, the housing market has demonstrated resilience this year. Matt Thompson, head of sales at Chestertons, noted steady demand from buyers in March, particularly in London, where demand continues to outpace supply.

Source: City A.M.