The average London house price increased by 1.5 per cent to £256,681 in November, up from £252,952 in October, as demand continued to be strong. House prices in the capital have risen almost 9 per cent since the start of the year. Yet, buyers remain price sensitive and overpriced houses are not selling.
haart reported no decrease in the number of first-time buyers entering the market, which remained at 26 per cent in November.
Paul Smith, chief executive of haart, said: “Despite the interest rate rise in November, there hasn’t been a drop in buyers’ appetite to enter the market. As the festive season approaches, we look set to see an increasingly ‘seasonless’ market. Traditionally, the summer months and the Christmas period brought calmer phases with fewer people prioritising house hunting, but if the high activity continues, these ‘seasons’ within the market could start to become less noticeable.
“Although first-time buyers remain wary, the majority are still confident in their own financial security under a backdrop of economic growth.”
Rod Murdison, proprietor of Murdison & Browning, commented: “My clients seem relatively confident there’s not going to be a crash in the market or a dramatic rise in interest rates, so are choosing to refinance or purchase another property. Everyone seems much more financially aware than when I first started in this business and remember to come speak to an adviser when their special rate ends. With first-time buyers, I don’t think a quarter per cent rate rise puts someone off buying. As long as it’s cheaper to buy than to rent, people will want to purchase.”
