House prices in London fell last month as UK sales prices rose by £3,000

The average sale price of a house in the UK is now £365,357 (Shutterstock/ZGPhotography)

The average sale price of a house in the UK is now £365,357 (Shutterstock/ZGPhotography)

London sales prices fell 0.1% to £680,800 last month, according to new data from Rightmove, bringing the annual change in sales prices to a 2.5% increase from March 2022.

It now takes an average of 70 days to secure a buyer for a home in the capital, according to the real estate portal, which is an improvement on the 74-day average recorded in January, but well above the 57-day average seen a year ago. .

Nationally, the average is now 57 days.

The only London boroughs to see sales prices fall over the past year were Kensington & Chelsea in west London, where sales prices are now £1,672,000 after a fall of 1.8 per cent, and Richmond upon Thames in south-west London, which saw a 0.7 per cent decline to £899,000 on average.

The biggest increase in asking prices was seen in Camden, north London, which saw growth of 13.4 percent in the year to March. Sale prices in the Borough are now £1,121,600 on average. In second place was Barnet, also in north London, where prices are now £711,800 on average after an annual growth of 6.8 per cent.

Marc von Grundherr, director of real estate agency Benham and Reeves, said: “While the London market hasn’t performed as strongly as the rest of the UK during the pandemic market boom, momentum is building and although sale prices are still a bit lower than expected. pace for this time of year, we have seen a strong and consistent level of buyer demand so far in 2023.

“This follows the reversal of the pandemic-inspired exodus of buyers from London seeking larger, more affordable homes beyond the capital.

“This reversal has been fueled by a return to normality, both socially and in the workplace, with many buyers now keen to return to the comfort of London life.”

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throughout the UK

The median home price rose by almost £3,000 in March, buoyed by increases in the asking price for larger properties, according to Rightmove.

In Britain, the typical price of a property coming on the market increased by £2,906 or 0.8 per cent compared to the previous month.

This was mainly due to an average increase of 1.2 per cent or £7,947 in sales prices in the largest housing sector, Rightmove said, which includes four-bedroom single-family homes and homes with five bedrooms or more overall.

Across all property types, the median price of a UK house coming on the market was £365,357 in March.

The pace of the market reached an unsustainable level in the last two years

Tim BannisterRightmove

The 0.8 percent price increase was below the 1.0 percent average monthly increase seen in March over the past 20 years, reflecting a greater degree of pricing caution by many new sellers, Rightmove said.

In general, new seller asking prices are typically around £5,800 below the peak reached in October 2022.

Tim Bannister, Rightmove’s director of property science, said: “The start of the spring season sees stability and confidence continue to return to the market as it recovers from the turmoil in late 2022.

“The pace of the market reached an unsustainable level in the last two years and was on track to slow to a more normal level, although the speed of this slowdown to more normal was accelerated by the reaction to the September mini-budget.

“While higher mortgage rates and economic headwinds pose challenges, many potential home movers who were effectively sidelined in the frenzied bidding wars of the past two years will find that a slower-paced market it gives them time to plan and secure their next move as soon as possible. We are entering the traditionally busy spring shopping season.”

Sales of typical first-time buyer-type properties with one or two bedrooms are seeing the fastest improvement.

One contributing factor to larger home sales lagging are signs of a decline in people making lifestyle changes spurred by the coronavirus pandemic.

While the London market has not performed as well as the rest of the UK during the pandemic market boom, momentum is building.

Marc von Grundherr, Benham and Reeves

The proportion of buyers asking to move more than 50 km from where they live is now 15%, the same level as in 2019 and below its pandemic peak of 18%.

Rightmove also said signs that inflation may recede faster than expected may mean that increases in the Bank of England base rate are more subdued, which will have an impact on mortgages.

But he added that market conditions are changing and it remains to be seen how the mortgage market reacts in the coming weeks.


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