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A house in London is more likely to sell for above its asking price than elsewhere in England and Wales for the first time since 2016, underscoring evidence of a rebound in the capital's housing market.
A quarter of homes for sale in London (25.1 per cent) sold for more than their asking price in the first three months of this year, slightly more than the 24.5 per cent in England and Wales as a whole.
Five years ago, London was lagging significantly on this measure. About 17 per cent of homes sold above their asking price across the country in 2019, compared to 13 per cent in London, according to figures from real estate firm Hamptons.
Anisha Beveridge, research director at The Hamptons, said: “This is another sign that the London market is starting to get back on its feet after a difficult period.” “There is more than one type of metric that shows this, so we can be more confident in signs of recovery.”
London has lagged behind the rest of the market over the past seven years, with the relative cost of its housing limiting buyers' affordability – exacerbated more recently by rising mortgage costs. After the pandemic spread and working patterns changed, London also lost out due to rising prices in the outer suburbs and beyond, and falling demand for apartments.
Prices fell last year in most London boroughs. The capital's overall price falls were the largest of any country or region in the UK.
“Last year was very difficult for London because it is the most unaffordable part of the country,” Beveridge said. “This is of course where high mortgage rates will be hit hardest.
The mood has changed since then, with prices in the capital rising again, although stalled by a renewed rise in mortgage costs in recent weeks. Among regions, prices in London rose by 0.4 per cent annually in March, compared to 0.3 per cent across the UK, according to Halifax figures on Friday.
As part of a snapshot of the national market, property website Rightmove found that the number of sellers listing their homes in the capital on Thursday last week was 39 per cent higher than on the previous Thursday, as buyers looked to market their properties ahead of schedule. Easter holiday. She said this was the “biggest day for vendors coming to the market so far this year.”
Rory Scarisbrick, partner at buying agent Property Vision, said the easing of mortgage rate volatility in the second half of last year and into the start of this year brought “a sense of relief among buyers who need to get on with life”. They said: 'We are not headed for a mortgage rate disaster. “So let's go ahead and do what we have to do.” He said that this coincided with a feeling among sellers that this market was no longer a sellers' market.
The time it takes for a home listed on the market to sell (or receive an offer) is another indicator of demand. The Hamptons said London showed a greater decline in this measure than any other region. The average home showing in the capital was 57 days in the first quarter of this year, compared to 81 days during 2023.
