A new report has revealed that property transaction levels have risen across the prime central London market in the last three months. This was after prices fell by 7% in 2016.
The report from Strutt & Parker indicates that London was outperformed by the outer South East, East Anglia and the South West.
Rise and Falls
UK house prices rose by 4.1% year-on-year to the first quarter of 2017, but the prime central London market saw a very different story.
In fact, prices in prime central London are around 13% down from the peak seen in 2014.
Vanessa Hale, research partner at Strutt & Parker, said: ‘The first quarter of 2017 has however seen a slight upturn in purchaser activity and realistically priced, good quality stock is selling reasonably well.’
The prime central London lettings market saw new rental tenancies increase by 22% during the opening three months of 2017, in comparison to the same period in 2016.
Data from the report indicates that sales in the below £2m sector of Prime Central London slipped by 32% in the opening quarter of 2017, compared to last year.
A possible reason for this decline could be the weakness of sterling, which is keeping overseas investors away from the market.
This said, domestic UK buyers continue to dominate the prime central London market.
Charlie Willis, head of a London residential agency, said: ‘We have seen a positive change in buyer sentiment and an uplift in transaction levels in the first quarter of 2017 compared to the end of last year. Values have now softened by up to 10% and buyers realised there are good opportunities out there.’
‘Sellers are beginning to understand the importance of realistic pricing. Stamp duty which was a concern for many buyers last year, is no longer causing such an issue and the market has absorbed this extra taxation,’ he added.