According to the latest data from estate agency, Chestertons, compared to October last year, there has also been a 28% increase in sales as buyers rushed to complete purchases – usually in order to safeguard the fixed-rate mortgage rates they had already agreed with lenders.
Matthew Thompson, Head of Sales at Chestertons, says: “We are not currently seeing or expecting a substantial drop-off in demand from buyers or the rapid fall in prices that other UK-wide figures are suggesting. One of the unique factors of the London market is the number of cash buyers, who are partly insulated from the current high mortgage rates. Another factor is London’s enduring popularity with overseas buyers, who are able to benefit from the relative weakness of Sterling against the US Dollar.”
Whilst buyers in London appear highly motivated, many would-be sellers seem to be waiting for more economic and political certainty before putting their properties on the market; Chestertons noticed a 34% drop in the number of market appraisals carried out in October compared to September.
This pause for breath, warns Matthew Thompson, is “likely to cause a shortage of new properties coming onto the market in the New Year and will help support property prices in many areas.”
