More than a third of properties for sale in London saw asking prices reduced in July. Figures released by HouseSimple revealed 35.3% of sellers dropped what they were asking for – an increase on February when the proportion was 29.7%.
The online estate agency said this proved the housing market in the capital was slowing.
Newham fared better than most as it was the borough with the fewest discounted properties – just 25.7% of stock was reduced in price.
However, this was still a 3% increase on February’s figure of 22.6%
Tower Hamlets and Greenwich has the joint second smallest drop of 27.9%, compared to 23.9% and 22.7% previously.
The worst performing boroughs were Richmond upon Thames and Kingston upon Thames, which both saw more than 45% of current property stock reduced.
CEO of HouseSimple Alex Gosling said: “These figures only support the view that the London property market has run out of steam. Agents are dropping prices to persuade cautious buyers to purchase in an economic climate where it’s difficult to predict what’s going to happen next.
“What’s unusual about the level of discounted properties is that it would suggest there are too many sellers and not enough buyers. But strangely this market is still suffering from a lack of new supply.
“There are actually plenty of buyers looking but they’re a different buyer from 12 months ago. They are more cautious and viewing multiple properties before making a decision.
“Long gone are the days when buyers were diving in to avoid missing out as the market accelerated away from them.
“Also, plenty of sellers are still hoping to market at mid-2016 prices, but it’s a different market now, post Brexit and the election.
“Anyone committed to selling may have to accept that they need to drop their prices if they want to attract buyers.
“This is a time to price realistically not optimistically to attract buyers in a market that is stagnating not booming.
“If you are willing to negotiate there are committed buyers out there.”
HouseSimple looked at current listings in 32 London boroughs on property website Zoopla and the percentage of those properties that had seen reductions.
Havering had the biggest increase in reduced properties over the five months - up from 24.3% in February to 37.5% in July.
Hammersmith And Fulham was the only London borough where less property was reduced in July 34.7% compared to 35.6% in February.
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