House prices in London fell 1.6% in November and could fall further next month as vendors start to cut the price of their homes in the run up to Christmas.
Research by Rightmove shows the average price of a home in Greater London is now £619,866, compared with £630,050 in October.
But in the past year, house prices in the capital have risen 8.1% and averaged £573,228 last November.
And the smaller than usual November drop indicates steeper value climbs next year.
Housing market analysts report that new-to-the-market sellers have dropped their asking prices at this time of year for the last eight years, with an average drop of 1.9% over the last five years.
Those looking to market their property as Christmas gets closer often have a greater sense of urgency to find a buyer and recognise that trimming their asking price will provide an incentive to potential buyers more focused on seasonal Christmas trimmings.’
But that is likely to be a short-lived respite as the combination of high confidence and low interest rates is a recipe for higher prices next year.
Rightmove reports that long-term low interest rates are typically a trigger for activity and price rises in the property market.
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Image credit: Robert Lamb