Homes in Greater London are 9.7 per cent more expensive than they were in August 2014, property website Rightmove said today.
House prices normally face a drop in August when compared with July, as the holiday period distracts buyers and sellers. But this year’s drop was only 1.3 per cent, half the average of the August drop between 2008 and 2014, which is 2.6 per cent.
First-time buyers face the brunt of price increases, with the average cost of a property typically purchased by someone trying to get on to the first rung of the housing ladder climbing 11.3 per cent.
“Buyers can normally pick up some bargains in August as sellers who are marketing their homes when they should be holidaying often have a pressing need to sell and mark their prices down pretty aggressively,” said Rightmove director Miles Shipside.
“At 0.8 per cent down on the previous month, this is the least generous that sellers have had to be for eight years and a clear sign of upwards price pressure in the pipeline.”
Rightmove said property owners were reluctant to come to the market, with the number of newly marketed properties plunging 18 per cent on the same time last year.
A similar trend in house prices was seen nationally. The average national house price rose 6.4 per cent annually in August, but was highest for first-time buyers at 6.9 per cent.