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Asking prices for properties rise despite credit crunch
Mira Bar-Hillel, Property Correspondent22 Sep 2008
Asking prices for properties in London have increased despite the credit crunch and mortgage famine, figures reveal today.
Although sale prices achieved are falling, the average asking price in the capital rose by four per cent in a month,the equivalent of just over £15,000.
Prices for properties in Kensington and Chelsea saw the biggest rise, up 9.7 per cent or £136,000, followed by Kingston (8.1 per cent), Westminster (7.2) and Camden (6.8).
The research by asking prices monitor Rightmove also showed that London buyers expect their purchases to go through much quicker than may have been anticipated in the current climate and that 40 per cent of London buyers expect to view no more than six to 10 properties before finding the right one.
The government initiative to give a stamp duty holiday on properties up to £175,000 has failed to make an impact in the capital, with two out of three buyers saying it has not made a difference.
Miles Shipside, commercial director of Rightmove, said: "The current financial situation has led to a readjustment which will make property prices more affordable, though admittedly still beyond the reach of many.
"Our research shows that those who are looking to purchase a property want to do so quickly but are struggling to find properties in their budget."
Seven out of 10 Londoners agreed that the shortage of buyers gives others a better chance of securing a good deal.
Industry experts think the phenomenon is based on the sellers' understanding that buyers are looking for bargains and factoring a discount into the price.
Reader views (4)
So, houses are put up for sale at a slight discount to last years price. No-one looks let alone buys. After three months they come off the market.
It's a shame none of these people really want to sell.
- Adrian, London, 22/09/2008 12:18
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Far to many homes in London are going to houses of multiple occupancy full of Nu-arrivals and going against the family structure and most on benefits of some sort. That's why London property prices are increasing! It is believed many are acting on instructions of Nu-Lab councils who have a vested interest in destroying London which already resembles a freak show.
Look at Brent council, no family can buy in Brent because house's go to council and those on benefits. Nu-Labour paying people to be poor. Brent council has the highest rate of BT then many despot parts of Brazil. "work it out" Glasgow east or what? Poor health poor out look on life. Vote Nu-Lab "NEVER"
- Mike, London, 22/09/2008 11:25
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This article demonstrates how meaningless statistics can be used effectively to create a PR buzz.
There could be all kinds of reasons as to why asking prices on the face of it are rising. One reason could be that more high-end properties are coming on to the market as investors try to dump them before the prices go down. This statistic doesn't neccessarily mean that the prices for similar properties are rising and that we should all rush to buy, which is how Rightmove are presenting it!
- Liz, London, 22/09/2008 11:11
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Rightmove are simply making figures for headlines. (A cost effective form of marketing.)
I doubt anyone in the UK truly believes property prices are increasing>
- Smell.The.Coffee, London, 22/09/2008 10:24
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