Thursday 14 September 2023

Zoopla Predicts Lowest transaction levels in a decade for South London Homesellers

The housing market in South London is slowing down, as rising mortgage rates and affordability challenges are making it more difficult for buyers to move.

According to Zoopla, the number of home sales in South London is down by 28% in the first half of 2023 compared to the same period last year. This is the biggest slowdown in sales in the region since 2008.

The slowdown is being driven by a number of factors, including:

  • Rising mortgage rates: Mortgage rates have been rising steadily in recent months, making it more expensive for buyers to borrow money.
  • Affordability challenges: The cost of living is also rising, making it more difficult for buyers to save for a deposit and afford monthly mortgage payments.
  • Weaker demand: Some buyers are also holding off on making a move, waiting to see if house prices fall further.

The slowdown is having a mixed impact on different types of properties. Sales of smaller, more affordable homes have fallen less than sales of larger, more expensive homes. This is because smaller homes are more affordable for buyers who are on a tight budget.

The slowdown is also having a different impact on different areas of South London. Sales have fallen more in areas where house prices are highest, such as Richmond and Wimbledon. This is because buyers in these areas are more sensitive to changes in mortgage rates.

The housing market in South London is expected to remain subdued for the rest of 2023. However, there are some signs that the market may be starting to bottom out. Mortgage rates have started to fall in recent weeks, and there is some evidence that demand is starting to pick up.

If you are thinking of buying a home in South London, it is important to be aware of the current market conditions. You should also get pre-approved for a mortgage before you start looking at properties. This will give you an idea of how much you can afford to borrow and will make the buying process smoother.

Here are some tips for buying a home in a slow market:

  • Be prepared to act quickly. When homes do come on the market, they tend to sell quickly.
  • Be flexible with your criteria. If you are willing to compromise on things like location or size, you may be more likely to find a home that you can afford.
  • Be prepared to negotiate. Sellers may be more willing to negotiate on price in a slow market.
  • Don't give up. The housing market is cyclical, and conditions will eventually improve.

If you are interested in knowing more or you are curious as to what your rental property is worth today drop me a line and pick my brains or use my free online valuation tool to get a ballpark figure!

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