Prime London stock rises but transactions fall

Levels of stock in Prime London were 42% higher in February 2021 compared to the same period last year, LonRes research has found.

However, in January 2021 new instructions were down 15% year-on-year and 22% compared to the previous five-year average.

Last year activity was especially high as part of a post-election bounce.

Marcus Dixon, head of research at LonRes, said: “A year ago, the market in central London was hotting up.

“A Conservative majority in December’s general election resulted in a flurry of activity as buyers, who had been nervous of a regime change, returned to the market.

“Exchanges and under offers in January and February last year rose by more than a quarter on 2019 levels and prices edged up too.

“This was welcome news for the market last year but does mean that activity at the start of 2021 is likely to be subdued in comparison.”

The sales market for houses priced between £2m and £5m was busiest over the last three months, with a 15% increase in the number of houses sold compared with the same period a year earlier.

Achieved prices rose 1.6% in January compared with the same month a year earlier.

Over the last three months house prices outperformed flats, with a 5.2% increase compared to a 0.4% rise for flats.