Signs of London housing market recovery as buyers’ choice widens

Home buyers across Britain are being given a widening choice of properties as the “back to school” season gets under way, according to a website.

Rightmove said that, following the quieter holiday period, there has been a 16% jump in new properties coming to market in the first week of September compared with the average over the final three weeks of summer.

There are also signs of confidence returning to the London market, particularly at the higher end where price reductions are helping to pull more buyers in.

Across Britain, asking prices have jumped by 0.7% or £2,088 month-on-month in September.

This has pushed the average price to £304,061 – 1.2% higher than a year ago – but some parts of Britain are seeing annual asking price growth of 4%-plus.

These areas are the East Midlands (4.7%), Wales (4.6%), the West Midlands (4.5%) and Yorkshire and the Humber (4%).

There have been year-on-year falls in the North East (minus 1.1%), London (minus 0.5%) and the South East (minus 0.1%).

Miles Shipside, director of Rightmove, said: “The start of the back to school season sees a surge of sellers coming to market compared to the preceding quieter holiday period.

“Sellers aren’t hanging back in coming forward to try and sell, and with average prices just 1.2% higher than a year ago, many seem to be pricing sensibly.”

Rightmove highlighted evidence that the London housing market is showing some signs of recovery at the top end of the market.

The number of sales agreed above £750,000 in London is up compared with a year ago, Rightmove said.

Mr Shipside said: “In London, after asking prices rose by over 50% between 2011 and their peak in 2016, there have been two years of subsequent price falls in parts of the capital.

“Now, there are signs that these price reductions in parts of London have led to an upturn in buyer activity as sentiment improves.”

Rightmove said average asking prices in inner London peaked in February 2016 at £823,000, and are now at £756,000, which has helped the increase in buyer activity.

Joseph Robinson, director for Stirling Ackroyd in London, said: “It’s of no surprise to anyone that the sales market in London has been tough over the past 12 months, however over the past few months we’re seeing positive signs of improvement within the sector.

“Not only have we just had a record July and August with regards to properties exchanging contracts, we’ve also seen a rise in sales being agreed across our offices, with an increase of 62% over the past two months alone.

“We feel confidence is returning to the London market after a long hiatus.”

Geoff Wilford, founder of Wilfords Estate Agents in London, said: “We’re certainly seeing renewed buyer activity with sales inquiries up 15% in comparison to this time last year and sales agreed up 10%.”