30
Jun
Data suggests worst is over for London property market
The London property market is beginning to stabilise after months
of falling house prices, according to new data from Haart.
It recorded only a 0.25 per cent drop in house prices in the
capital in June, with the average value falling from £249,211
in May to £248,642.
Compared with a total drop in London property prices of almost 14
per cent in the last six months, this could be taken as an
indication that the market is bottoming out.
Haart suggested that buyers may be taking advantage of lower prices
and notes that the share of first-time buyers purchasing property
in the city has risen to 19 per cent.
It also cites strong rental demand as another factor supporting the
housing market.
Russell Jervis, managing director of the firm, comments: "Our data
shows that price corrections have already happened and the market
is now starting to stabilise, as it is underpinned by some strong
fundamentals."
Recent research has suggested that the decline in affordability in
the housing market is prompting many people to remain in the rental
sector, fuelling higher rents.
