Sellers have been lowering their asking prices across the capital as they try to move before the 31st October Brexit deadline.
The London property market has been sluggish and even declining for many months now, but despite reports of recent improvements, new data released by TwentyCi has revealed that a third of people selling property there have dropped their asking prices.
Of the approximately 12,000 properties listed in London when the research was carried out earlier this month, 29% had been reduced, while 11% had lowered their asking prices by more than £37,800 – which is the average salary in the capital.
The areas with the biggest asking price dips included some of the most expensive parts of the city, with Westminster, Kensington & Chelsea, Wandsworth, Camden and Tower Hamlets seeing the heftiest reductions.
Opportunities for brave investors
Almost a fifth (18%) of properties for sale in Greater London have reduced their asking prices by more than 10%. While the news may not be a surprise judging by the latest house price indices focused on the capital, some believe it also marks the start of increased investment in the city as cheaper opportunities become available.
Jamie Salisbury, of online agent Nested, said: “Amid this endless uncertainty and gloom there are great opportunities out there for buyers if they’re bold enough to seize them.
“This is particularly true for homeowners who are trading up, presenting an opportunity to buy a new home that might otherwise have been out of reach.”
The current mortgage rate climate is particularly favourable, with lenders offering increasingly competitive rates, making buying property with a mortgage relatively cheaper.
“With money still relatively cheap to borrow and prices falling, buyers can realistically snap up properties they couldn’t have afforded in a stronger market.”