The average asking price for a house in London is currently £695,079, down 0.3 per cent from May but up 1.4 per cent annually, reports Rightmove.
One borough has seen asking prices rise as much as 9.7 per cent annually, while others are down 2.9 per cent, according to the latest house price index.
Demand has remained strong in the run-up to the general election, but high mortgage rates are continuing to limit buyer’s budgets, the property portal reports. The average five-year fixed mortgage is currently 5.04 per cent, versus rates of 4.94 per cent in January.
“Some potential sellers appear to be watching and waiting rather than taking action, evidenced by a dip in the number of new sellers coming to market, particularly at the top-end,” said Tim Bannister, Rightmove’s director of property science.
“This is understandable when many of these sellers have more flexibility over when they act, but overall, it appears to be business as usual for the mass-market.”
Some of London’s most expensive inner boroughs saw the highest annual growth in asking prices — but so too did some of the outermost boroughs.
In north London’s Camden, where the average house price is now £1,119,816, asking prices have risen 9.7 per cent annually. Merton, on the Surrey border, has an average house price of £772,133 and saw a 6 per cent increase — the second highest in London.
House prices are up 5.3 per cent on average in west London’s Hammersmith and Fulham (average asking price £1,038,495), and up 4.7 per cent in Newham (average asking price £483,913) on the border with Essex.
But next door to Merton, Kingston upon Thames and Sutton saw house prices fall 2.4 and 2.6 per cent respectively, the biggest dips in asking prices across London after Hackney (-2.7 per cent) and Brent (-2.9 per cent).
The borough level data can be volatile, with Hackney regularly topping the charts for price growth while Camden often records large falls in asking prices.
Estate agents reported that buyer activity was spurred on by the general election news.
“Compared to last month, [we] are seeing a bounce in buyer activity,” said Matt Thompson, head of sales at Chestertons. “Since the date for the General Election has been announced, house hunters who have been on the fence due to political uncertainty have become more confident about going ahead with their purchase.”
Myles Moloney, area sales manager at Chase Buchanan, reported similar themes in the London property market.
“House hunters with larger equity and buying power have pushed on to agree a sale as they feel the result of the election is forgone,” said Moloney.
“Buyers who are only just starting their property search, however, have been slightly more cautious to observe how the manifestos could benefit them during their property buying journey — particularly first-time buyers.”Vote-winners for first-time buyers (FTBs) were thin on the ground in the manifestos. Labour promised to give FTBs “first dibs” on new housing developments and a permanent mortgage guarantee scheme, while the Conservatives floated the return of Help to Buy, and a permanent lifting of Stamp Duty for homes under £425,000.
“Some of the housing proposals announced are a good start with positive intentions, however they could go further in supporting the majority of first-time buyers to get onto the ladder, or helping people in different circumstances to move,” said Bannister.
“Lower mortgage rates will have the most immediate impact on the market, however we hope that well-thought out housing policies will lead to sustainable market improvements over the long term.”
Jeremy Leaf, a north London estate agent, said buyers were cautious at both ends of the market.
“Although only reflecting asking or aspirational prices, these Rightmove figures mirror a trend we have also noticed in our offices,” said Leaf.
“Activity has reduced over the past few weeks probably more as a direct result of a likely delay in the cut of base rates than the forthcoming election. On the other hand, caution is more prevalent in demand for larger, more expensive properties where any tax changes are more likely to be felt after 4th July, whichever party is successful.”
