In the beginning of August this year, The Week UK has reported that the housing market in London is experiencing its sharpest price fall in a decade. The Office of National Statistics revealed that London property values dropped to 4.4% in the first quarter. There are many factors that have caused this scenario, including the Brexit in 2016, when the property market began to slow down, even if home prices were surging by 8.2% during that time. Buyers were delaying and sellers were hesitant to enter a declining market.
For first-time home buyers, lower property prices could be attractive. In South West London, house prices have dropped by 42.7%. East Putney properties are drawing in investors, though, and the area is appealing for first-time buyers and young professionals with budgets less than £1.5 million. Experienced estate agents in Putney and other places may help buyers find a good property in the district, such as flats that are being developed in the High Street.
Down markets may be the best time to buy
Estate agents and experts agree that those who are buying a home with the intent of residing long-term will not be affected by price drops. The slump is likely taking its turn, anyway. Statistical data shows that the proportion of dropping property values in London has dropped to 68% at the start of 2019, compared to the 80% proportion in the autumn of last year. Furthermore, monthly value drop proportions have dropped below 30% for the first time in two years.
Data shows that 28 of London’s 32 boroughs have asking prices that are still lower than 2018’s. 23 boroughs, on the other hand, are announcing increases monthly. The surge of asking prices is triggered by new developments in the area.
In the case of Putney, buyer’s value-for-money neutralizes the slowing market. The price of prime properties per square feet is 12.66% less than that of southwest London’s. 55 new flats starting at £525,000 are being developed near East Putney Station, and they are due to be completed this year. 15 apartments with two and three bedrooms are just launched on the High Street, and prices start at £695,000.
Down markets could or could not be a good time to sell
Hesitant buyers are starting to put an end to the waiting game, which has become favorable for sellers. The value of prime properties in central London has dropped by over 19% since 2014, but since the slump is shown to be slowing down, the falling values do the same. The increase of stamp duties in 2016 on all homes priced over £937,500, and the added 3% premium on second homes have affected the market greatly, but with the prices of luxury homes down, buyers at the end save over £105,000.
The decision to buy or sell a property still depend on the circumstances of the investor. Depending on their purpose, buying a house could be best done now while prices are low. Meanwhile, it could be the worst time for a seller if they have expected a price surge. Before taking any investment-related risks, such as buying or selling something as valuable as a house, it’s best to do thorough research.