House price growth a reason for London property sellers to be cheerful

Home sellers in London have had some good news with new house price data showing the first year-on-year price growth in the capital since 2017.

Rightmove’s monthly house price index has revealed several reasons to be cheerful for those looking to sell up in London.

Annual rise a boost

The price of property coming on to the market is up by 1.3 percent on the same month a year ago, the first time since August 2017 there has been an annual rise.

With the summer months usually seeing a flattening of asking prices, this marks a positive change for those keen to secure a sale before the autumn.

Meanwhile, the number of sales agreed in London is also up by 5.2 percent on the same period a year ago.

Increased market activity

Miles Shipside, Rightmove director and housing market analyst, said: “Some potential buyers have sat back and watched the price of property coming to the market in the capital falling year-on-year for the last couple of years, giving many of them little incentive to do anything but sit on the sidelines.

“It’s always hard to spot the bottom of a market, especially in a massive place like London with its myriad of local markets.

“However, new seller asking prices are now 1.3 percent higher than at this time last year, and if that trend continues, buyers might decide to stop sitting it out before prices rise further.

“That could happen if we have more certainty on our Brexit outcome, and this annual price rise may be an indicator of more market activity to come.”

Buyers not inhibited

Chris Osmond, sales director at London-based Johns&Co, told Rightmove that his company has registered more buyers in the first seven months of 2019 than in the whole of 2018, suggesting that those keen to move are no longer inhibited by the prospect of Brexit.

He added: “It’s not surprising; it’s been three years since the vote and Brexit fatigue has kicked in.

“After all, life goes on and you can only put plans on hold for so long.

“We’ve also seen the number of vendors wanting to cash in on long-held investments increase, and there are plenty of canny investors on the periphery looking for good deals, so overall we expect the summer season surge to linger on into autumn.”

About the Author Frances Traynor

Fran is the content writer for Capital Conveyancing, producing articles on all aspects of the conveyancing process and around the UK property market in general. If there is a topic you'd like to see covered on these pages, please drop Fran a line on [email protected]