London house prices fall sharply

The average discount to the asking price for a newly agreed home sale was nearly 5% in London this month, according to Zoopla

Buyers are securing the largest price cuts nationwide in Britian in almost five years.

London and southeast England are seeing the biggest home discounts in Britain as buyers across the country secure the largest price cuts nationwide in almost five years.

The average discount to the asking price for a newly agreed home sale was nearly 5% in London and southeast England this month, according to a report from property portal Zoopla. 

That compared with a 2.8% discount for properties elsewhere in Britain and a national average of 4.2%, the biggest reduction since March 2019.

“House prices are falling the most in London and the south east as higher mortgage rates have the greatest impact on buying power and prices,” said Richard Donnell, executive director at Zoopla. 

“It’s in these areas where buyers are driving the greatest discounts to asking price to achieve a sale as they have stronger negotiating power.” 

British households are facing a barrage of cost pressures triggered by pricey borrowing and inflation that is only slowly dropping back from generational highs. 

That has led to a slump in first-time buyer sales, as wannabe homeowners remain stuck in ever-pricier rental contracts while mortgages become more expensive.

A separate report showed almost a quarter of British mortgage holders are considering selling up and moving to a cheaper property after borrowing costs surged. 

• Bloomberg