House prices in London have decreased by approximately 2% last month as buyers are becoming more hesitant due to the cost of living crisis. Asking prices have also decreased significantly in other areas of the UK last month, by an average of 1.1%. The amount of discounted properties have doubled compared to last year October 2021 due to rising interest rates.
However, certain boroughs in London have been doing better than others in terms of competitive house prices, with Richmond performing the best. Within Richmond, average asking prices were up 3% to hit £936,000. Last year, Camden’s property prices increased by 12.8% annually to an average £1.07m.
On the other hand, Islington’s property prices decreased by 2.5% last month to £797,000 while house prices in Westminster increased by just 1%.
Londoners may be more hesitant to purchase a home since Liz Truss announced the mini-budget. The recent report from the Royal Institution of Chartered Surveyors, reported a reduction in both demand and house price growth. The mini-budget certainly had an impact on the property market which created uncertainty and led to rising interest rates.
The first-time buyer sector has been affected the most by falling demand for marketed properties compared with last year. More sellers are also more prepared to offer discounts to sell their properties. The number of unsold properties which have been discounted increased from 7.5% in October 2019 to 8% in October 2022.
T +44 (0)203 488 1488