London buyers are becoming more cautious but they may benefit from more stock entering the market, Chestertons claims.
A market update from the London agency brand said the cost of mortgage borrowing and stubborn inflation figures have reduced the number of new buyers coming to the market in June, with 15% fewer buyers starting their property search compared with May.
However, Chestertons said it conducted 19% more viewings with committed buyers in June compared to the same month last year, which it said suggests demand still exists.
In order to secure a quicker sale, many sellers decided to reduce their initial asking price, with 35% more sellers making the decision to drop prices compared to June 2022, the update said.
According to Chestertons, buyers who resume their search in the coming weeks will benefit from a wider selection of properties as the agency’s branches registered 9% more properties being put up for sale in June compared to the same month last year.
Matt Thompson, head of sales at Chestertons, says: “Although there still is a vast number of buyers wanting to move as soon as possible, rising interest rates have forced others to be more cautious, review their financial situation and calculate a more conservative budget.
“Whilst this resulted in fewer new buyers entering the market last month, we expect activity to pick up again once buyers have adjusted their criteria and lenders are bringing more products to the market again.”