Hello everyone, I hope you are all well and having a great summer. For me has been working as usual, but with this hot weather, who doesn’t like to work in Kensington and Chelsea with all these beautiful gardens. Today I have the latest numbers about the housing market in the borough (form May to Jul) and I am going to address one question that I hear every day. What is going to happen to the property prices, are they going up or down?
But first, how is the market in Royal Borough of Kensington and Chelsea?
In terms of properties sold during for the months of May to Jul, and comparing with the same period last year, there was a decrease of 38.7% in the number of transactions. The average transaction achieved an average of £1,440 £ per square foot. Achieved prices per square foot have decreased by 7.0% for flats over the last year and have increased by 7.6% for houses. The prices on average had a 6% discount on the initial asking price. 14.6% of properties were sold within 3 months, compared with 10.4% for the whole of Central London. Properties sold in the last 3 months achieved an average price of £1,419,170 for flats and £4,602,304 for houses
In terms of properties on the market, we can say that 63% have been on the market for over three months, and 44.9% of properties currently available have been on the market for more than six months
In this period 39.6% of properties on the market have been reduced in price and 12.5% of available properties are currently under offer. As a curious note, 37% of properties on the market are priced at £2 million or higher.
Now the famous question, are the prices going up or down? The reality is, absolutely no one knows, but there’s a general consensus in the UK and throughout the world that they might be going down. Let's analyse some of the factors that can contribute to a fall in prices: a huge rise in unemployment when the furlough scheme ends, lenders are making more difficult to get a mortgage under certain circumstances, and people, in general, will be more reluctant to buy a house because of the uncertainty of the present situation. On the other end, we have record low interest rates, cuts in the Stamp Duty costs and the number of houses for sale are fewer than usual, which might create a balance between buyers and sellers, and consequently will keep house prices stable. And obviously there are a lot of other smaller circumstances, but who will win this battle? Only the time will tell.
See you next week and enjoy the fantastic weather.