17
Oct
London sees drop in flat sales
Flat sales in London have declined significantly, perhaps as buyers
want for a drop-in price.
Research from estate agents James Pendleton found a 47 per cent
decline in sales over the past 12 months, although prices of flats
have increased by two per cent.
It was not just flats that saw a downturn in sale levels, with the
number of detached properties being sold dropping by five per cent
and an eight per cent reduction in terraced house
transactions.
There are concerns that this reduction in property sales could
because many first-time buyers are waiting for prices to be more
affordable.
“This a classic sign that first time buyer demand is
sensitive. There is a temptation to wait on the side lines while
prices become more realistic. When that happens, it can only be a
good thing, because housing markets are most stable when
transactions are healthy across the board,’ said Lucy
Pendleton, director of James Pendleton,
“A reality check is in the offing after such strong growth in
London and the scale of this drop-in sales of flats tells me it is
now more likely to be inevitable. Solid numbers of people are
showing some reluctance at current prices and signalling to all the
other market participants they can’t transact unless they
come back down,” she added.