The scramble for homes in
Buyers accustomed to queueing for viewings before the outbreak of bidding wars have seen asking prices falling as tighter mortgage lending, fears of an imminent interest rate rise and an increase in the number of homes for sale have put a brake on a market that many feared was turning into a bubble.
This week, the
The upmarket property company
"Prices were rising really, really fast. People were paying well over the asking price and then all of a sudden it was like a handbrake had been pulled up," said
Perdios said the uncertainty put off buyers and convinced potential sellers that the top of the market had arrived, meaning more stock entered the market and prices started to ease. "Before, you were almost speculating as to what people would pay . . . now we're exercising more caution with our valuations and asking prices have dropped slightly."
In Kennington, south
"I would say that May was probably the top of the market," said Floyd. "People probably realised that the market was topping out and started to put their homes up for sale - in January I had eight properties on my books; I've now got 60. In June alone we took on 34."
Floyd said that in the first half of the year "value went out of the window" - every day a couple of properties went to sale by sealed bids and homes fetched an average of 104% of the asking price.
"It's gone back to normal to be honest," he said.
Other experts said the rapid rise in prices meant that some buyers would not, or could not, enter the market. "In well over 30 years I've seen this countless times, when competing agents force asking prices so high that buyers just say no," said
He added: "A strong economic backdrop, and the fact that buyers are likely to come back once the choice of properties on the market improves, will lead to further, although much more modest, price gains next year. But with prices already at a very high level, we expect other regions will at least match
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