Data reveals drop in under offer prime London property

The number of homes in prime London going under offer during November was down 14.6% compared to the same month last year, according to LonRes data.

The figures also showed that sales agreed were 4.8% lower over the same period.

There were also some signs of increased supply, with the number of new instructions rising 4.6% higher in November than during the same month last year. However, there were no signs of price falls; the average achieved price per square foot currently stands 1.9% higher than at the same point last year.

The prime London market with the highest growth was Marylebone at 12.7%, while the second highest was Knightsbridge & Belgravia at 9.3%. The broader trend appeared to be one of higher price rises in prime fringe London followed by prime inner, with prime central recording the lowest price growth of all markets.

The number of sales across prime London was consistently higher than the pre-pandemic average for every month until November. Between January and October this year, the number of sales across prime London was 26% higher than the pre-pandemic average. However, the recent slowdown in activity has taken this figure down to 1.7% below the pre-Covid average in November.

Commenting on the findings, Anthony Payne, managing director of LonRes, said: “It’s been a mixed year for the housing market in general and for prime London in particular. Headline price growth peaked in July at 8.9% and has fallen back in November to 1.9%, but it’s still in positive territory.

“It’s the lack of choice that’s underpinning this market and acting as a support to prices. This will continue to be the case so long as there are still buyers out there looking to buy.”

On the lettings front, Payne said: “There continues to be a dearth of properties to rent. Private landlords we hear are selling up and corporate landlords are not able to add supply fast enough to meet demand. It’s difficult to see what will act as a catalyst for change and in the meantime, rents keep rising.”


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