Prime residential market in London sees rise in sales and viewings, prices still down
Viewings and sales in prime central London’s residential property market are rising, despite the continued political uncertainty surrounding Brexit, according to the latest industry analysis.
Real estate firm Knight Frank’s latest index report reveals that the number of viewings over the summer hit a five year high, with 16% more viewings over July and August than the same period last year.
It also shows that the ratio of new prospective buyers to new property listings climbed to 11.4 in August across prime central and prime outer London, the highest level experienced in more than 10 years.
Meanwhile, in the six months to August, Knight Frank carried out 13% more transactions than the same period last year, the highest experienced over the equivalent period since 2014.
The index data shows that in the prime central London market prices fell by 0.1% month on month, were down by 0.4% quarter on quarter and are still 3.9% below where they were a year ago.
In the prime outer London market, prices fell by 0.2% on a monthly basis, were down by 0.6% quarter on quarter and down by 3.5% year on year.
The report says that the rise in viewings was probably due to buyers responding to price adjustments and, in the case of overseas buyers, the weakness of the pound.
It adds that record- ow interest rates have helped to underpin market liquidity and mean that a growing number of buyers are fixing for longer-periods of time. Some 96% of all mortgages issued in July were fixed-rate, with the percentage of five year fixed rate mortgages climbing to 47%, which compared to 27% in the same month two years ago.