Liquid error: wrong number of arguments (2 for 1) House prices in London slow to a half as 'silly season' ends | Marsh & Parsons Sales and Lettings Estate Agents London

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House prices in London slow to a half as 'silly season' ends

Wed 30 Jul 2014

London house prices slowed almost to a halt last month in the latest sign that the once red-hot market is rapidly cooling. The average price of a home in the capital went up just 0.1 per cent, or 536, in June to 437,608 after surging 10 per cent since the start of the year, according to official Land Registry data. Agents said a combination of tougher mortgage rules, fears of a looming interest rate hike and the strength of sterling have all combined to end Londons property "silly season" and halt the once rampant sellers market in its tracks. Peter Rollings, chief executive of west and central London agency Marsh & Parsons, said: "After a frenetic start to the year, the pace of house price growth has slowed this quarter as the market stabilises and returns to more normal trading conditions. "With more choice coming onto the market, sellers are able to find their next onward purchase and consider trading up. Calmer conditions in the market have meant buyers view purchasing London prime property as a less daunting process than has been the case previously." Annual property price inflation in some outer boroughs has slipped into single figures with just 8 per cent recorded in Hounslow and 8.3 per cent in Redbridge. The biggest rise was in Waltham Forest where prices have soared 28.1 per cent in a year. It is the first time that the Land Registry figures regarded as the "gold standard" for house price measurement have shown signs that the market has reached a plateau. Its figures tend to lag several months behind anecdotal evidence in the market because they are based on completion prices lodged with the registry. Prices are still 16.4 per cent higher than they were a year ago, but the annual rate of increase is starting to subside from the 20 per cent levels seen only a few months ago. Alexander Gosling, managing director of online estate agents Housesimple.co.uk, said: "Monthly growth of 0.1 per cent is not exactly a slump but the heat does appear to have gone out of the property market. "With lenders Mortgage Market Review, rate rises to come and wage growth still proving negligible there is every reason to expect more conservative growth in the months ahead. "I think London buyers in particular have reached a point where enough is enough. Silly season couldnt go on forever." Across London the number of properties sold for more than 1 million in April the latest month for which figures are available rose 35 per cent to 516, including 171 above the proposed mansion tax threshold of 2 million.

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