The average house price in London decreased by 0.25% in August to £247,524 says the latest report from The Wriglesworth Consultancy. Prices have already fallen by 15% since January, the report claims, and are unlikely to fall much further this year.
The market is, says Wriglesworth, set for recovery next year as prices continue to stabilise and vendors get more realistic; they were achieving 95.5% of their guide price in August, compared to 95% in July.
Buyers, however, are unlikely to benefit from the stamp duty holiday on houses priced under £175,000 as the average house price is above this figure.
First-time buyers are also returning to estate agents, enquiries reached 21% as prices return within their reach.
Russell Jervis, Managing Director of haart said: ‘The increase in the percentage of first time buyers looking to take their first step onto the property ladder is a very good sign for the London market, indicating that asking prices are now more realistic and potentially more affordable. However, the Government must start working with lenders to end the liquidity crisis, rather than continuing to come up with headline grabbing schemes, as the enquiries are not necessarily translating into sales.
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‘Although lenders’ rates are beginning to come down and some first time buyers will benefit from the new stamp duty break, many still face a huge struggle to save up the much larger deposits that are required. Lenders must relax the mandate for lending and increase the availability of finance.’