The average asking price for a London property in July was £677,794, a 2.1% drop from June, according to property website Rightmove. That’s a cool £17,285 shaved off the average asking price. While this might seem like a big drop, it’s actually pretty normal for this time of year. Plus, across the whole year, London prices are still up by 0.7%.
Postcode lottery for sellers
But don’t be fooled by the averages – it’s a real mixed bag depending on where you live. Some boroughs are seeing prices soar, while others are experiencing a dip. Fancy living in Westminster? Be prepared to shell out £1,537,470 on average, a hefty 5.4% increase compared to last year. Meanwhile, over in Brent, asking prices have dropped by 4.8% to an average of £616,308.
Cheaper mortgages on the horizon?
So, what’s behind these fluctuating prices? The Bank of England recently cut interest rates, and that’s got everyone talking about cheaper mortgages. And guess what? Lenders are already offering deals with interest rates below 4%, making it cheaper to borrow money for a home.
Rightmove’s property expert, Tim Bannister, thinks this could be a turning point for the market. He says the rate cut has given buyers a boost, and with more attractive mortgage deals on the table, things are looking up for the autumn.
Good news for first-time buyers?
Estate agents are also feeling optimistic. Matt Thompson, head of sales at Chestertons, says more people are house hunting now than this time last year. He believes the lower interest rates are tempting first-time buyers to finally take the plunge.
Will house prices rise or fall?
The rate cut has even made Rightmove more optimistic about house prices across the UK. They’ve bumped up their prediction – instead of a 1% drop, they now think prices will actually rise by 1% by the end of 2024.
So, what does this all mean for you?
- Buyers: Now could be a good time to bag a bargain in London, especially with cheaper mortgages on offer.
- Sellers: Don’t panic if your borough isn’t seeing huge price increases. Things could pick up in the autumn, but keep an eye on what happens with the Budget.
One thing’s for sure: the London property market is always full of surprises!