More than a third of properties currently for sale in London have been reduced in price since they were first marketed, providing further evidence that the property market is slowing, new research suggests.
Some 35.3% of all properties currently being advertised in London have had a price reduction since they were first marketed, up from 29.7% in February 2017, according to the study from online estate agent HouseSimple.
The research looked at current listings in 32 London boroughs on property portal Zoopla, and the percentage of those properties listed that have been reduced in price with Richmond upon Thames Kingston upon Thames having the most at 45.8% and 45.3% respectively.
In four other boroughs, Bromley, Harrow, Hillingdon, Hounslow, more than 40% of properties currently being listed have had a price drop since initial listing.
Newham has the lowest percentage of properties currently being marketed that have been reduced in price at 25.7% while, Hammersmith and Fulham is the only London borough where the percentage of property stock dropped in price is higher today than it was in February.
According to HouseSimple chief executive officer Alex Gosling, the figures support the view that the London property market is slowing. ‘Agents are dropping prices to persuade cautious buyers to purchase in an economic climate where it’s difficult to predict what’s going to happen next,’ he said.
‘What’s unusual about the level of discounted properties is that it would suggest there are too many sellers and not enough buyers. But strangely this market is still suffering from a lack of new supply. There are actually plenty of buyers looking, but they’re a different buyer from 12 months ago. They are more cautious and viewing multiple properties before making a decision. Long gone are the days when buyers were diving in to avoid missing out as the market accelerated away from them,’ he explained.
‘Also, plenty of sellers are still hoping to market at mid-2016 prices, but it’s a different market now, post Brexit and general election. Anyone committed to selling may have to accept that they need to drop their prices if they want to attract buyers. This is a time to price realistically not optimistically to attract buyers in a market that is stagnating not booming. If you are willing to negotiate there are committed buyers out there,’ he added.
