Home >
UK property >
First-time buyers return as London house prices fall

First-time buyers return as London house prices fall

Wednesday, 9 August 2006 12:00 AM

London's booming housing market may finally be starting to cool following a second consecutive fall in house prices.

London house prices dropped by one per cent in July to £245,017 from £247,703 in June, although they are still eight per cent higher than this time last year, according to data from Haart estate agents.

This has brought about a return of first-time buyers, whose share of the market has risen by two per cent to 28 per cent - its highest level for 12 months.

Sellers are having to accept average reductions of nearly three per cent, rising to 4.8 per cent in north London, with first-time buyers stepping in to take advantage.

"As the hot summer months cool down the activity in the property market, only the properties that are correctly priced are being snapped up," said Paul Smith, chief executive of Haart estate agents.

"In this heatwave, people would rather be out at barbeques and enjoying the weather than shopping for houses. With fewer applicants viewing properties, sellers are often not in the driving seat and should keep their prices keen to ensure a sale."

Mr Smith said now was a good time for first-time buyers to enter the market.

"For those who are closely monitoring the market and waiting for prices to match their budget, now is the time to hunt for a good bargain. Despite interest rates rising last week, the selection of competitive mortgage deals currently available means that first-time buyers are more able to afford mortgage repayments."

North London saw the largest price falls in July, with a decrease of 4.1 per cent taking the average price to £229,628.

The south-east of London was the only region to enjoy a house price increase, with a 4.9 per cent rise taking its average price to £223,502.