The London property bubble shows renewed signs that it is beginning to burst. Property sellers in the UK have reduced their asking prices and London property prices have fallen by 7.8 per cent on average and as much as 30% in some areas according to City AM today.
“People trying to sell their homes are increasingly having to mark down their original asking price – and the amount they are dropping it by is going up.
Last month we heard that sellers in some London boroughs were having to drop prices by as much as 29 per cent, but new research suggests the issue is even more wide-spread – and the amounts are getting bigger.
On average, sellers are now reducing their asking price by more than £25,000 – a jump of £4,000 of 17 per cent since the start of the year, according to Zoopla.
Almost a third (29 per cent) of properties currently listed for sale on the portal have had their price reduced at least once since originally being listed – an increase of 0.43 per cent since start of 2016.
London certainly has its fair share of price cut-backs – as with the previous study, Kensington & Chelsea came out top, but this time around there is an even higher proportion of homes being marked down (33.3 per cent compared with 29 per cent). Homes in this borough were reduced on average by £137,421.
London as a whole had an average reduction percentage of 7.8 per cent – above the overall national average of 6.86 per cent.”
The full article can be on City AM here.
Sharp falls in London and UK home prices will severely impact the heavily indebted and vulnerable UK economy.
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