London Lures Buyers Back as Home Counties House Prices Fall

London's housing market has regained momentum, outpacing the Home Counties where properties valued over £1 million have seen significant price reductions since last summer. According to a report by Investec, sellers in the Home Counties are slashing asking prices by an average of £151,130, a 10 percent drop, to attract buyers. This trend contrasts with the renewed demand for homes in or near London, as employers revert to office-based work arrangements, emphasizing shorter commuting distances.

Approximately 70,000 households left London last year due to high mortgage rates, but the tide might be turning, with data from Hamptons indicating that 11.9 percent of London buyers are now from outside the capital. Meanwhile, Zoopla reports a 21 percent year-on-year increase in buyer demand in London. The Greater London area saw a more modest reduction in asking prices for £1 million plus properties, averaging 8.6 percent, with sellers taking off £159,540 from the price tag.

Interest rate rises have also impacted second home owners in coastal areas outside London, prompting some to sell as additional mortgage costs become burdensome. This has led to notable price drops in regions like West Sussex and Essex, where sellers reduced asking prices by 12.6 percent and 11.2 percent respectively for £1 million plus properties.

Source: Evening Standard