Four out of five London homes now selling for under asking price
There is further confirmation that London’s property market is cooling, with 80% of homes sold in July going for under the asking price.
According to Lonres, which collects information from agents right across central London, “the bubble is now deflating”.
Just over a fifth of all properties currently available to buy have had their prices cut.
It says that asking prices may now have to be reassessed.
Lonres says that since the spring, agents’ confidence in the market has weakened.
It reports that over the last three months, levels of stock, withdrawals, the fall-through rate and the length of time taken to agree sales have all risen, while demand levels have fallen.
The report says that 44% of agents have reported an increased urgency among vendors to sell, given concerns over a property bubble.
The number of new sales instructions in the second quarter of this year rose by 26% compared with the first quarter.
However, transactions in the second quarter were down by 9.9% on the same period last year.