Demand for Prime London property is fragile despite the Bank of England finally halting its cycle of interest rate rises in September, Knight Frank said.
While the number of new prospective buyers in London rose 12% between August and September as this year’s autumn market began, it was half the increase experienced in the previous two years.
In calmer political times before 2016, the same jump exceeded 40%.
Tom Bill, head of UK residential research at Knight Frank, said: “Essentially, the prime London property remains in a holding pattern.
“It has not experienced the extent of price declines seen across the UK but neither have the capital’s more affluent postcodes been immune from the deteriorating economic sentiment.”
Bill added: “Last month’s pause by the Bank of England added to a sense that we have gone through the eye of the storm.
“Indeed, Knight Frank has updated its forecasts to reflect the fact we expect most of the decline in house prices across the UK will take place this year.”
Knight Frank forecasted a 3% house price decline in both Prime Central and Outer London this year.
