House prices have plummeted nearly ten per cent in Lewisham and Southwark, it emerged this week.
Price monitors Hometrack reported this week that the average price of a house in Lewisham is now £166,100, which represents a drop of 10.2 per cent over the last twelve months. In Southwark the average house price has dropped 9.8 per cent over the last 12 months, to £283,700.
Estate agents place the reduction at 15-20 per cent
Phil Sohenthal, sales manager at Rocodells, an estate agent on the Brockley Road in Lewisham, said the average three-bed house costing approximately £355,000 12 months ago would now cost approximately £300,000. This equates to an 18 per cent drop over the last 12 months.
Kushy Mahood, manager of Kushy Move on the Bellenden Road in Peckham said: “There have been changes from 15-20 per cent depending on street and location.” The estate agent sells houses from across Peckham, Dulwich and Camberwell. Despite price drops in housing, he claimed, it is increasingly hard to sell property. Many sellers are choosing to withdraw their properties from sale and wait until the market recovers. Mahood’s advice for people selling property is to “wait until the end of next year”- if they can afford to.
Tim Jordon, area manager of Oak Estates, which has branches in Brockley and Forrest Hill, estimated that house prices have dropped between 13-15 per cent in the last 12 months. He said prices are falling even faster for repossessions. Increasingly, however, he claims people are reconsidering selling their houses. “People aren’t putting them on the market, they’re renting them out, and waiting until prices rise to sell.”
Good news for tenants
However, while this is bad news for homeowners, it is great news for people wanting to rent property, according to Jordon. With the influx of property on the rental market, rental rates have had to become more competitive. Jordon said: “We’ve had nine rent reductions from landlords today alone. Landlords that have empty properties want them to be filled and have taken a price drop.” With Christmas approaching, he speculated, both established and new landlords just want to get the cash in quickly.