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London asking prices indicate market buoyancy

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Sellers in the capital are decreasingly likely to drop their asking prices, signalling growing confidence in the London property market.
London asking prices indicate market buoyancy

There was a 19.4% decrease in the number of sellers in the capital willing to drop their asking prices this May.
According to Chestertons’, a London estate agent which carries out market analysis, the increase in sellers’ confidence echoes Halifax’s latest House Price Index for May, which revealed that the average property price in London is now 3.1% higher than a year ago.

Cory Askew, head of sales, said: “As our nation is slowly coming out of lockdown, buyer confidence is growing. As a result of the sustained high demand from house hunters, buyers now find themselves in a sellers’ market. Even if the easing of current lockdown restrictions is postponed, we believe the property market will remain buoyant as buyers are eager to find a deal before property prices rise further.”

Guy Gittins, CEO of Chestertons, added: “What makes May’s market performance stand out is the rare scenario of supply meeting demand. Chestertons’ branches had 38% more properties on the market compared to May last year, whilst the cumulative number of buyers entering the market is up 31% year to date. Normally, the UK’s housing market demonstrates a clear imbalance between these two indicators with demand often outstripping supply. This has helped to translate demand into actual sales, with Chestertons seeing a 9% increase in sales in May compared to April.

“We have seen exceptional transaction volumes so far in 2021, with three times more buyers than usual. Viewings have been at a 5-year high for the past three months. This has led to competitive bidding but with supply meeting demand, large price increases have been kept at bay.

“The phasing out of the Stamp Duty holiday does not appear to be slowing buyer demand and we anticipate the market will remain buoyant throughout the rest of the summer.”

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