London’s so cool

18 August 2014 By Chris Hughes

Property asking prices in England and Wales are falling, led by the capital. London may now revert to underperforming, while nationwide house-price inflation settles to a safe level. The Bank of England could keep rates low and encourage price rises where they’re needed.

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Asking prices for property coming to market in Kensington and Chelsea fell 7 percent in the four weeks to Aug. 9, compared to the previous five weeks, UK property website Rightmove said.

In England and Wales, property asking prices fell 2.9 percent in the same period.

Across London as a whole, asking prices fell 5.9 percent, led by Wandsworth to the south of the city, which recorded an 8.4 percent decline after a 3.8 percent fall in the prior period.

On Aug. 11, real-estate agent Hamptons revised down its 2015 forecast for Greater London house-price inflation to 3 percent from 6 percent. It revised up its 2015 forecast for prime central London from 2.5 percent to 3 percent.

“As house price expectations moderate, the incentive to buy as quickly diminishes, reducing the pace of growth in demand. However, for those already in the market who have been waiting for a peak in prices, there is now a greater incentive to sell,” Hamptons said. “That switch has already happened in London where stock levels are improving as many choose to cash in.”

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