The looming election deters sellers with property listings down 15% while lower house prices tempt buyers looking for bargains.
Data from Rightmove shows the number of sellers listing new properties on the market ahead of the election are down 14.9% compared to a year ago with UK house prices -1.3% or -£3,904 lower and average values of £302,808.
The number of new sellers in London has reduced nearly 26.9% compared to a year ago with uncertainty from the Brexit deadline and looming general election.
The lack of new homes could mean remortgage buyers stay in their current property and releasing capital which they can use to improve their home.
Lower house prices are an opportunity for first time buyers with homes valued well below the peak of the boom and the London market is down -1.4% or -£8,926 this month.
Largest slump in new sellers for a decade
The fall in new seller numbers for the national market down 14.9% is the largest year-on-year slump since August 2009 with London worse and lower by 26.9%.
Miles Shipside Rightmove director said, elections normally dampen activity as uncertainty causes a degree of hesitation, but this one is being called to try to break the deadlock after three years of uncertainty.
These circumstances have proved to be a negative factor for thousands of prospective sellers, who have postponed their marketing plans, says Miles.
Larger detached homes with four and five bedrooms are the most active sector with sales agreed down only -1.4% compared to -2.9% for the national market.
Despite the fewer properties on the market home movers and first time buyers are going forward with their purchases with sales agreed only slightly lower than last year and London the third best region.
For those moving in the same market will find the lower value of their home is offset by the lower value of the new purchase with the biggest gains to be made in the top of the housing market.
London showing signs of recovery
The capital is recovering slowly with annual house prices changing from -1.1% last month to -0.8% for September and Tower Hamlets up over by 3.5% with averages values of £592,389.
The following table from Rightmove for London homeowners shows average house prices and annual change to November 2019.
| Borough | House prices | Annual change |
|---|---|---|
| Tower Hamlets | £592,389 | 3.5% |
| Southwark | £659,973 | 1.6% |
| Havering | £409,678 | 1.6% |
| Sutton | £467,618 | 1.0% |
| Waltham Forest | £486,268 | 0.6% |
| Bexley | £411,276 | 0.3% |
| Hackney | £631,455 | 0.1% |
| Hillingdon | £487,524 | -0.1% |
| Newham | £413,010 | -0.2% |
| Bromley | £534,535 | -0.2% |
The lower house prices in Enfield or Brent both down by -3.9% for the year means buy-to-let landlords need a smaller deposit or mortgage and rental yields after interest payments would increase.
For home movers wanting to trade up when prices are falling, they may find the gap to their next property decreases which means they need a smaller deposit or mortgage.
Moving to a different market in London can be beneficial with house prices for Inner London up over the year compared better value in outer London down -3.7%.
Transport for London Zone 3 has seen average house prices fall by -4.6% or -£27,393 over the month with average values of £565,918.
Older homeowners no longer need to downsize to release cash as the equity release mortgage buyer can stay in their home accessing wealth to consolidate debt, for home improvements or holidays.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to reduce inheritance tax owed by your beneficiaries.
Learn more by using the mortgage cost calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
