Sales in the prime central London property market are continuing to fall, on a monthly, quarterly and annual basis, the latest sector index report shows.
In prime central London prices fell by 0.2% month on month in April, by 0.7% quarter on quarter and year on year they are down by 1.4% compared to April 2017, according to the data from real estate firm Knight Frank.
While in prime outer London prices fell month on month by 0.2%, by 0.6% on a quarterly basis and year on year by 3.4%.
However, the number of £1 million plus and £2 million plus sales across the whole of the capital are strengthening after a period of more marked declines during 2017 while the number of new buyers registering has risen 13% since January 2016.
According to Tom Bill, head of London residential research at Knight Frank, asking prices more fully reflect higher rates of stamp duty in these two markets. He also pointed out that the ratio of new prospective buyers to new sales listings, an indicator of the strength of demand versus supply, has improved in the last two months.
However, he also pointed out that buyers are scrutinizing the market more closely amid wider political uncertainty. As a result, viewing levels rose 35% over the same period and the average number of days on the market rose by a quarter.
The number of higher value properties listed for sale in prime outer London is rising. ‘This is an indication of greater uncertainty in the lettings market due to recent tax changes but also increased confidence that higher rates of stamp duty have been more fully absorbed in higher price brackets,’ Bill explained.
He added that there is still uncertainty surrounding post-Brexit trading arrangements and the timing of the next interest rate rise have contributed to sterling weakening against the dollar in recent weeks, reversing gains made this year.
