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London sellers are squeezing the supply of homes for sale on the property market as they sit tight over Brexit.
Rightmove’s latest analysis of the capital’s housing market suggests a lack of supply has helped prices rise slightly in the last month.
In its monthly asking price index, the online estate agent listings site says the average asking price for a London home was £618,432, up 2.4 percent on the month.
However, there are a third (30 percent) fewer new sellers on the market this year compared to the same month a year ago.
Many would-be sellers are keeping one eye on the uncertainty over the UK’s exit from the European Union, which was expected to happen on October 31 but may now be delayed into the new year following political turmoil.
Miles Shipside, Rightmove director, said: “In a strange Brexit-induced paradox, thousands of potential sellers are holding back compared to this time a year ago.
“Ironically, this means that those who are coming to market have a better chance of selling.
“So, while some would-be sellers are being put off, it’s actually a good time to sell.”
Shipside added: “Those who are ignoring the Brexit disruption have less competition from stay-away sellers. And their prospective buyers have less negotiating power with a reduced choice of suitable alternatives.
“London has spent a few months in the price doldrums, but the scarcity of properties coming to market is now helping to underpin prices, and the number of sales agreed is higher than the same month a year ago.”
According to Rightmove, the usual autumn bounce in the UK-wide property market has been less pronounced than usual, with the number of sellers down 13.5 percent year on year.
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]