House prices are now lower than they were a year ago for properties being put up for sale, according to new research. The average asking price of a newly marketed property in the month to mid-November, was 0.2%, or £607, less than at the same point last year.
This is the first year-on-year fall in asking prices since 2011 and the decline in confidence is accelerating. But there’s an interesting game of two halves afoot in London, with average asking prices in outer London holding steady while central London flounders.
The best performing locations are Bexley, where asking prices are up 2.8% year on year, and Bromley, up 2.1% according to Rightmove’s house price index. However Rightmove found that asking prices in more unaffordable inner London are down 2.5 % year on year. The biggest losers are Lambeth, where prices are down 6.8 %, Hackney, down 4.9 %, and Tower Hamlets, down 3.9 %.
The fall is significant because although an end-of-year slump is normal – vendors traditionally set lower prices in an attempt to get their homes sold before the New Year – this is the biggest November fire sale since 2012.