Two surveys of the UK property market show falling London prices but better outcomes for sellers across the rest of the UK, pointing to a buyer’s market for those with the finances.
London property prices are falling most rapidly. According to property website Rightmove, asking prices in central London have dropped by an average £18,000 in one month, though boroughs such as Kensington and Chelsea have seen average asking prices incredibly tumble by more than £300,000 over the summer.
Meanwhile, the monthly UK Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) confirmed that slowing of the central London market – 56 percent of respondents said they’d seen a fall in prices during August. Rightmove said London asking prices have dropped by 3.2 percent in the last year.
However, the RICS research suggests that other regions across the UK – such as the north-west, south-west, Northern Ireland and Scotland – have seen solid growth across that same time frame, making that marketplace “more resilient” according to the RICS. Those outcomes were also reflected in the Rightmove survey with the north-east, Yorkshire and the east Midlands all showing increases in prices.
Resilient marketplace across the UK
According to Rightmove, the average asking price for a house across the UK fell by £3,660 (1.2 percent) from August to September, the first decrease at this time of year since 2013 but one that can be attributed almost entirely to the 2.9 percent drop in London asking prices.
Meanwhile, the RICS survey predicts that house price expectations will stay flat over the next three months, thanks to a combination of a lack of interest and demand from buyers.
Simon Rubinsohn, chief economist at the RICS, said: “The latest results continue to suggest that the greatest pressure on both prices and activity continues to be felt in prime central London market.
“Although there are some signs that the wider south-east is also losing some momentum, anecdotal evidence suggests the impact is very location specific. Meanwhile, the numbers for most other parts of the country point to a rather more resilient marketplace.”
Both buyers and sellers can benefit
The variation in house price growth and falls across the UK is nothing new as a north-south divide has always existed, but now buyers in the traditionally more expensive and stronger regions of London and the south-east could be tempted into the market by those falling prices while sellers in the best performing regions will be looking to achieve top dollar on their property.
When buying, you will need the reassurance of a property survey and Surveyor Local’s experienced sales team can advise on the best survey for your situation. All the surveyors on our nationwide panel are chartered surveyors who are members of the RICS and a quick turnaround can be arranged on many surveys. Call now on 0800 022 4428 or read more on the different types of survey available before getting a no-obligation quote.