Latest London Property News: September 2024
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| There were 8.7% more sales transactions in Prime Central London in July than the same month last year, and 23.7% more than the 2017-2019 (pre-pandemic) July average according to the latest Lonres report. The number of properties going under offer in July was 23.6% higher than a year ago, taking the total for the year to date within 1.0% of the same period last year. Last month the sales and under offer figures indicated a slower market, with the pre-election period through June likely to have put some deals on hold. It appears that buyers and sellers on the whole welcomed the election result, as the latest weekly data shows a clear improvement in the market. In total in the four weeks leading up to the election, under offer numbers (the timeliest indicator of deals being agreed) were 10% lower than the same weeks last year. In the four weeks after the election, they were 6% higher. The impact is clearer at higher price points – the equivalent figures for £5m+ properties were -24% and +17%, with some individual weeks showing significant increases. Similar analysis of data on fall throughs is also positive. In the four weeks prior to the election, fall throughs across prime London were only 2% higher than a year earlier, while they were 16% lower in the four weeks after. On the supply side, new sales instructions in July were unchanged from a year earlier and 2.3% higher than the 2017-2019 July average. Stock on the market across prime London fell slightly over the month but at the end of July was 10.5% higher than a year earlier, and 23.5% higher than at the end of July 2019 (five years earlier). In the £5m+ market available stock is increasing as new instructions come to market. There were 28.4% more new £5m+ instructions in July than a year ago and at the end of the month there were 27.2% more £5m+ properties for sale across prime London than a year earlier. Compared to the end of July 2019 (five years earlier), there is 61.7% more available stock. On the other hand, in July transactions of properties priced at £5m or higher were 18.9% down on July last year. While the single month figures can be volatile, the year-to-date total is 10% fewer sales than over the equivalent period in 2023. This marks a reversal from being the strongest sector in 2021 and 2022. Yet activity remains significantly above pre-pandemic levels, with July recording 34.3% more sales than the 2017-2019 July average. International buyers are important in this market, which means it is more susceptible to external factors. One of those factors is exchange rates. These have been favourable for buyers holding their wealth in US dollars, as the weak pound has combined with limited price growth to offer relative value. Looking ahead, there is an important point to note on any potential recovery in international demand. As the UK economy stabilises and strengthens, you might expect prime London property to become more attractive to overseas buyers. The issue is that the stronger economy may lead to the currency strengthening, reducing the dollar ‘discount’. |
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Contact UsIf you are considering selling or renting your property or any residential property sales or lettings advice, please contact Nicholas Jaffray by telephoning: +44 20 3091 9311 or via email at: [email protected] or visiting at: 42 Upper Berkeley Street, London, W1H 5QL. |