Property prices in the capital increased by an average of £4,000 between February and March 2018, according to a new report.
Rightmove, which published the figures, says this gain represents a month-by-month rise of 0.6 per cent.
The movement is largely attributed to a reluctance to list homes on the property market, according to the report.
In total, new seller numbers were down three per cent compared to a year previous. Experts say this is highly unusual considering the time of the year; spring normally sees a higher influx of properties than any other period.
Miles Shipside, Rightmove director, says the unwillingness to put properties on the market could be linked to a decreased confidence in transactions. Asking prices in the capital are around 0.6 per cent lower than they were in March 2016.
“With an annual rate of price decrease as opposed to increase being a constant factor for the last seven months, it is bound to be a deterrent to some potential sellers,” said Rightmove director Miles Shipside.
“Even though fewer properties are coming to market, the slower rate of sales means stocks of unsold property are growing, leading to subsequent downwards price pressure.”
Mr Shipside said, in theory, this should strengthen the buyer’s hand, as those that are selling may be willing to take reduced offers.
James Perris, of De Villiers Chartered Surveyors, said the market remains cautious.
“Uncertainty remains due to Brexit and transactional costs, particularly in the upper tiers of the market, although the right stock will sell when priced competitively.”
If you’re looking to buy or sell a property in London, contact the residential property team at ELS Legal. We have specialist knowledge of the London property market and can advise you on market trends throughout a purchase or sale.
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