House prices 'drop by £30,000 in London'

House prices across the City of London have fallen by more than £30,000 over the last month, according to new figures. Research from Rightmove has found that the average asking price in London has dropped dramatically in the last few weeks, as sellers seem unsure as to whether they can achieve the high end prices they have been asking in recent months.

This fall coincides with drop in asking prices across the country as a whole, with properties now hitting the market priced at 3.3 per cent less than last month. This is a decline of almost £9,000, putting the average asking price at around £258,424.

Greater London has seen asking prices fall since the summer, with a large drop being seen in November when prices went from an average of £601,180 to £570,796. This is a 5.1 per cent fall in the expectations of sellers throughout the month, representing the second biggest decline after August.

All 32 London boroughs saw a drop in asking prices, with the largest declines experienced in Hackney and Hammersmith and Fulham, which saw falls of six per cent and seven per cent respectively.

Despite these falls compared to the rest of this year, average asking prices have still risen in comparison to December 2013. Homes coming onto the market have seen an increase in asking prices of 11.1 per cent this month, representing a rise of around £57,000 compared to the same period last year.

Some areas have seen an even larger rise in asking prices compared to the end of last year, with homes in Hackney coming onto the market at prices that are 22.5 per cent higher than December 2013. Haringey has also seen a steep increase of 21 per cent in the average asking price. 

These figures suggest that, although asking prices have fallen this year, it could be better to rent a property in London. With prices increasing quite dramatically year-on-year, you could find yourself better off renting a home and you may find that you get more for your money compared to buying a property.

Published 15th December, 2014

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