Positive Outlook for London Homeowners
New research shows that, despite the credit crunch and property slowdown the average asking price of a house in London continues to rise.
The cost of housing in London is dropping, but new research shows that the actual asking price for homes on the market has risen by an average of 4% in a month, which equates to approx £15,000.
The area that experienced the highest rise in asking prices, by nearly 10%, was Kensington and Chelsea, which is the equivalent of £136,000. This was followed by Kingston, at just over 8%, Westminster at 7.2% and finally Camden, at nearly 7%.
Rightmove, who also found that up to 40% of buyers in London anticipated finding the right property within six to ten viewings, carried out the research. This is quite an optimistic view of the time period required for property sales to go through, especially in view of today’s property market.
According to a survey, two out of three buyers do not believe that the recent changes to stamp duty requirements has had any impact on their ability to purchase houses in the capital. Although it has made housing more affordable, most houses are still out of a lot of people’s budget range.
Many people want to purchase quickly but they are still unable to find a house that they can afford. This shortage of buyers makes the market very competitive, and those with enough capital are able to get some very good deals.
Experts believe that asking prices are rising as sellers realise that a discount on the asking price is automatically factored in. By doing this they are able to counteract the loss they stand to make if they were to put the house on the market at its current value.
