Londoners lower prices in bid to sell homes

Londoners lower prices in bid to sell homes

House sellers have cut their asking prices sharply in Greater London in a bid to attract buyers, property website Rightmove says today.

Prices fell by 0.9% from March to April to an average of £403,545. However, that was still 6.2% higher than a year ago.

Rightmove added that prices suffered a monthly fall in 27 of the 32 London boroughs with the most expensive boroughs hardest hit and now showing the fastest slowdown in annual gains.

Since the survey was launched six years ago, a fall in asking prices has only happened once before in April – in 1985.

Miles Shipside, the commercial director of Rightmove, said: "It is highly unusual to see a fall in April. Spring is traditionally the peak season for new sellers to launch their properties on to the market at more optimistic prices, as gardens are looking their best and time is on a seller's side.

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"However, sellers have taken the smart step of acknowledging that buyers will need tempting with a more competitive price, partly due to concerns over City job losses and mortgage costs not falling in line with base rates."

Richmond was the top faller this month, down 2.7%, keeping the annual rate of increase down to 7.6% compared with 32.7% 12 months ago. The most expensive borough, Kensington and Chelsea, has an average asking price of nearly £1.5m, which has dropped by 2.2% on the month. The annual rate is now only up by 7.9%, having recorded some increases of more than 40% in the past year.

Shipside added: "The darling locations of the City bonus boom will never be ugly ducklings, but some of the shine has come off the top end of the market. A readjustment is to be expected after two boom years, so there is no need to panic.

"In fact, the external influence of the credit crunch could be seen as a welcome catalyst to making sure the boom didn't get even more out of hand. A recovery of the market is therefore likely once the effects of the credit crunch work their way through the system.

"However, this is completely dependent on the anticipated steps to be taken by the Bank of England being effective in solving mortgage liquidity."

Best performers April 2008

Hackney average price £480,473 (change from March +3.8%)Kingston-upon-Thames £510,697 (+1.3%)City of Westminster £998,601 (+0.9%)Islington £544,596 (+0.5%)Tower Hamlets £403,545 (+0.5%)

Worst performers April 2008

Richmond-upon-Thames £535,249 (-2.7%)Ealing £413,138 (-2.4%)Waltham Forest £297,555 (-2.3%)Kensington and Chelsea £1,458,558 (-2.2%)Brent £516,725 (-1.6%)

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