"With the property market showing notable signs of improvement so far this year, and with the prospect of an interest rate cut on the horizon, we expect market momentum to swing back towards sellers before the year is out"
- Marc von Grundherr - Benham and Reeves
The latest market insight from London lettings and estate agent, Benham and Reeves, reveals just over a third of all London homes listed for sale in the current market have seen a reduction in asking price, providing London homebuyers with a cost-saving opportunity when looking to secure their next home.
The research shows that 34% of all homes currently listed for sale across London have seen an asking price reduction. However, there are no less than 15 boroughs where buyers have an even better chance of securing a discounted property.
Nowhere more so than in Kensington and Chelsea, where 40.3% of all homes currently listed for sale have seen the price reduce since initially reaching the market. Of course, with the borough home to the most expensive house prices in the capital, even a price-reduced property is unlikely to provide an affordable option for the average London homebuyer.
So where should they set their sights?
Southwark is home to the highest proportion of price-reduced properties outside of prime central London, where 37.2% of all homes have seen the asking price cut since entering the market.
House hunting in Tower Hamlets could also result in a discounted purchase, with 37.1% of all homes listed for sale seeing an asking price reduction, whilst Croydon ranks third at 36.9%.
Other boroughs home to a higher-than-average level of price-reduced properties for sale include Westminster (36.9%), Hammersmith and Fulham (36.7%), Brent (36%), Lambeth (35.8%), Hillingdon (35.8%), Richmond (35.7%), Harrow (34.9%), Kingston (34.8%), Hounslow (34.7%), Camden (34.4%) and Bromley (34.2%).
Director of Benham and Reeves, Marc von Grundherr, commented: “Home sellers across the nation have had to readjust their asking price expectations in recent months, as higher mortgage rates have stifled the purchasing power of buyers and prevented them from offering the high market prices that we saw materialise following the pandemic market boom.
"Of course, not all sellers have been prepared to meet in the middle and have continued to market their properties at a higher price than current conditions dictate. Therefore, we’re seeing a good chunk of homes reach the market, before reducing in price in order to tempt buyers.
"Whilst this presents a great opportunity for a discounted purchase, buyers are advised to act quickly. With the property market showing notable signs of improvement so far this year, and with the prospect of an interest rate cut on the horizon, we expect market momentum to swing back towards sellers before the year is out.”
