London’s property market has become a buyer’s market, driven by demand flowing out of the capital and into areas such as the commuter belt since the onset of the Covid crisis, according to new figures published today.
Research by London estate agent Benham and Reeves reveals nearly one in three properties in the capital have had their initial asking price slashed whilst on the market.
Marc von Grundherr, director of Benham and Reeves, said: “While much of the UK is very much a seller’s market at present, it’s a fantastic time to be a buyer in London.”
The stamp duty holiday has been relatively less effective at stoking house price growth in the capital compared to other parts of the UK.
“This has been largely down to a reduction in foreign buyer demand due to travel restrictions and the trend of remote working seen during lockdown restrictions,” von Grundherr explained.
Lambeth offers the best chance of securing a discounted London property. 38 per cent of property stock listed in the borough have been subjected to an asking price cut.
Hammersmith and Fulham housed the second highest proportion of homes that fetched a discounted asking price at 37 per cent.
Von Grundherr urged prospective buyers to “act quick” to secure a discounted London home.
“As London has gradually reopened the property market has quietly been building momentum and we’re now starting to see properties sell for a far better price than they were just a few months ago.”
Latest data from the Office for National Statistics shows London house prices jumped 5.2 per cent over the last year in May, the lowest growth rate of any region in the UK.
Average UK house prices currently stand at £255,000, according to the ONS.
The scale of stimulus the stamp duty holiday has injected into the property came to the fore in June as buyers scrambled to complete transactions before the threshold at which taxes apply on transactions tapered down to £250,000 from £500,000.
Property transactions hit a monthly high of 198,240 in June 2021.