The London housing market experienced a modest increase in March, with average property prices climbing by 1.2% to £519,505, amidst negotiations leading to lower final selling prices.
London’s Housing Market Experiences Uptick in March
In March, the London housing market witnessed a modest resurgence, with the average property price climbing by 1.2%, bringing it to £519,505. This rise represents a 1.6% increase from the previous year, as noted in the Nationwide House Price Index. Despite this growth, estate agents have reported that buyers are engaging in stringent negotiations, leading to homes being sold for approximately £19,500 less than their initial asking prices.
Robert Gardner, Chief Economist at Nationwide, pointed to a general downturn in housing market activity, highlighting that mortgage approvals for house purchases are still trailing 15% behind the levels observed before the pandemic. Yet, recent trends indicate a potential shift as improved consumer confidence contributes to a higher number of buyer inquiries and selling instructions.
In comparison to the South, where the recovery is less pronounced, the northern regions of England, including the North East and North West, have experienced a 1.7% year-on-year increase in house prices. London, however, has emerged as a strong performer in the South, with its 1.6% annual price growth leading the rebound.
Market analysts anticipate a continued upward trajectory in house prices, influenced by a decrease in mortgage rates and enhanced affordability factors. As the market conditions begin to stabilize and demand increases, predictions suggest a gradual recovery of the housing market over the course of the year.
