London sees a fall in asking prices

According to recent figures there has been a drop in asking prices in the London area, with homeowners that are desperate to sell their homes lowering the prices by significant levels in some cases in order to try and sell their homes before the market grinds to a halt altogether. A recent report suggests that some London homeowners have slashed their property prices by an average £20,000.

Figures suggest that there was a 5% drop in the average asking price between July and August, and with the ongoing slump in the housing market many have resigned themselves to the fact that they will have to accept a far lower price for their homes in order to secure a successful sale. House sale levels have now fallen to the lowest level in thirty years, with some estate agents selling less than one property per week.

It is hoped that the recent decision to suspend stamp duty on properties up to £175,000 will help to kick start the housing market to some degree. One industry official said: ‘Faced with the scarcity of mortgage availability and the increase in unsold property, summer sellers have recognised the need to price aggressively.’

Another official stated: ‘Sellers who choose to come to the market during the peak holiday season generally have a greater need to sell. As a result, properties coming onto the market in July were on average over £21,000 cheaper than last month. Every borough in London saw a month on month fall in asking prices in July, and in all but six boroughs asking prices are now lower than a year ago.’