Property prices in Greater London are down annually for the seventh consecutive month and the downward trend is scaring away spring sellers, according to Rightmove’s March 2018 report.
Though the price of homes coming to the market rose 0.6% to £631,651 (US$888,271) in the last four weeks, that’s a decline of -0.6% from the same time last year.
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The U.K. property website analyzed prices between Feb. 11 and March 10, a representative told Mansion Global.
Though spring is traditionally a popular time to list property, the ongoing price woes have would-be sellers rethinking their plans, according to the report, released Monday. The number of newly marketed properties is down by 3% this month compared to the same period in 2017.
"With an annual rate of price decrease as opposed to increase being a constant factor for the last seven months, it is bound to be a deterrent to some potential sellers," said Miles Shipside, Rightmove director and housing market analyst, in the report.
"Even though fewer properties are coming to market, the slower rate of sales means stocks of unsold property are growing, leading to subsequent downwards price pressure," Mr. Shipside added.
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Of all the different types of properties, only owners of two-bedroom flats in the city are more willing to come to market so far in 2018 compared to 2017, with an increase of 1% in their numbers, the report said. Meanwhile the number of one-bedroom flats hitting the market compared to last year is down 2%, and the inventory of three-bedroom flats is down 3%.
House hunters are seeing even fewer listings, with the most reserved of potential sellers being owners of five-bedroom houses, which have seen listing numbers drop by 16% in the last year.
Four-bedroom houses have seen 6% fewer new sellers year over year, followed by two-bedroom houses with 4% less.
"While fewer owners of all other property types are coming to market, there is perhaps a more pressing need for space driving the desire to move on from a two-bed flat," Mr. Shipside said in the report. "If you live in one, extending your flat is an unlikely option to create more room for a growing family."
In contrast, he said, owners of larger homes are more likely to already have the space they need, so the decision to move is likely more discretionary, allowing them to wait for prices to rise before trying to sell.