Prime London sales market subdued

The prime London sales market recorded both annual price and transaction falls in October, research from independent property analysts LonRes has revealed.

Such as been the stagnation, values across prime London are still roughly in line with their early 2014 level.

Average achieved sold prices fell by 3.3% in October on an annual basis, the largest fall since May 2021.

Meanwhile there were 29.5% fewer transactions in October compared to the same month a year earlier, and 8.2% fewer than the 2017-2019 (pre-pandemic) October average.

Nick Gregori, head of research, LonRes, said: “With limited expectation of significant price growth or falls in what is a largely discretionary market, there seems to be no rush for many potential buyers and sellers. There is a sense that buyers are waiting for some positive news to spark them into action; without it they remain happy to wait and see.

“On the supply side our data suggests sellers are a little more motivated than usual. We are seeing properties withdrawn at a slower rate than usual combined with more price reductions.

“It may be the case that some vendors see the current market as their best chance to secure a sale at a price they are comfortable with.

“Some may expect conditions to weaken next year as economists forecast higher interest rates for longer and general uncertainty surrounding the run up to a general election comes into play.”

While Prime London as a whole as stagnated, the £5 million plus market has performed strongly, as new instructions in this market rose in October by 20.4% annually and the number of properties going under offer increased by 3.6% on the same basis. This reversed a previous annual reduction in sales of 31.6%.