As the capital’s property market remains “sluggish,” it takes longer to sell a home in London than anyplace else in the UK. The same goes for a Flat for Sale in London as well.
The average period between promoting a house and accepting an offer increased from 55 days in August to 58 days in September, up from a 12-month low of 48 days this time last year.
This was more than three weeks longer than the rest of the country’s average. The quickest time to find a buyer was in Scotland, which took 24 days, and the South West, 33 days.
However, according to Rightmove’s newest property price index, which analyses asking prices, this reflects a more robust supply-and-demand balance in London than anywhere else.
The rest of the country remains in the grip of a post-lockdown supply crunch. The quantity of properties coming on the market against the demand in the capital is more fairly distributed.
This explains the 0.8% increase in asking prices in London in the year to September, bringing the average cost to £638,285.
Barking and Dagenham saw the most significant yearly price increase of 5.7% to £346,594, followed by Bromley (4.8%) to £585,876).
This would appear to imply that the outlying areas are in more demand than the interior districts, yet Westminster comes in third with a 4.1% increase to £1,366,817. Kensington and Chelsea, the most expensive borough, is in the centre of the borough list of asking price inflation. Hence, Flat for Sale in London is experiencing difficulty.
Rightmove recorded a 5.8 per cent increase in asking prices in the previous year to £338,462 — an all-time high for England, Scotland, and Wales.
The highest increase came in Wales, where asking prices increased by 9.5% in a year, and it takes 35 days to sell. Prices in the East Midlands have also risen (9.1 per cent).
“Despite the customary summer holiday slump, heated rivalry among buyers for the record low number of available houses for sale persists,” Rightmove’s Tim Bannister said. “Buyer demand per available home is more than double what it was pre-pandemic.”
The growth of the “power buyer” also contributes to this imbalance. The power buyer has previously sold their property and has cash in the bank. They outnumber those in a chain fighting for the same characteristics. First-time buyers who have a mortgage in place are also in a good position.
However, there are early indications that the supply-demand mismatch in the UK may be stabilizing. The number of new listings was 14% higher in the first two weeks of September on average across the country than in the previous two weeks of August. So, the Flat for Sale in the London market is going through a recession.
“As we reach the busy autumn period, there are early signs of additional houses coming to market, which may help to rebuild buyer options gradually,” Bannister adds.
The nationwide asking price growth is also levelling down. Although the increase over the previous year to September is significant, the monthly adjustment is just 0.4% higher – a number influenced by a subdued London market.
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