Fewer sales, a drop in supply and falling prices – those are the new trends in London's property market according to the latest research.
Figures from the Halifax's monthly house price index show that the cost of buying a property in the UK dropped by 0.1 percent in the second quarter of 2017, the third successive monthly fall. The fall was even more acute between April and May, a fall of a full 1 percent. Meanwhile, sales dropped by 3 percent between April and May.
The slowdown in the property market was confirmed by research from the Royal Institute of Chartered Surveyors (RICS) in the shape of its UK Residential Market Survey. The monthly survey of surveyors across the UK showed less stock on surveyors' books, fewer properties available via estate agents and fewer sales.
Data from the Land Registry also revealed that house prices in London rose by 4.71 percent from July 2016 to April 2017, less than the UK-wide average of 5.6 percent for the same period. The average price of a house in London is now £482,779.
Uncertainty clouding decisions
Respondents to the RICS identified a number of issues that are colluding to depress the property market, including the result of the general election, uncertainty around Brexit and fears of an economic downturn.
All of the research shows that the UK property cannot be regarded as a homogenous entity. Simon Rubinsohn, chief economist with the RICS, agreed, saying: "The latest results demonstrate "the danger, however tempting, of talking about a single housing market across the country.
"RICS indicators, particularly regarding the price trend, are pointing towards an increasingly divergent picture.
"High-end properties may be seeing prices slipping back but, for good or ill, prices are continuing to move higher in many other segments of the market."
Taking advantage of market conditions
The figures pose a dilemma for house hunters in London – falling prices can be considered a good thing as it brings properties within reach, but the shortage of supply means much more competition for each house.
The key when you do spot the place you want is to move fast. And that's where Fridaysmove can help. Our seven-day operation can get your conveyancing underway quickly and also arrange the necessary property surveys.
Call our sales team now on 0800 038 6446 or start your no-obligation quote here.