Sales in London held firm in October but fall-throughs were 80% higher than their pre-pandemic average and under-offers fell sharply, according to LonRes data.

Analysis shows October sales in the capital were 11.6% higher than last year and 12.1% higher than the pre-pandemic average (2017-2019).

However, under-offers in London – a leading indicator of sales activity – were down 20.3% in October compared to last last year. This represents the first time the under-offer data has fallen below the 2017-19 average since June 2020.

Under-offers fell most in the more mortgage-dependent prime fringe area, the data showed, with houses and flats down 37% and 18% respectively. Under-offers for flats were down across all sub-markets but houses in prime central London saw a 38% increase.

Despite growing caution in the market, the October data for London shows prices per square foot still rose on last year, albeit only 0.8%. The figures also show average rents across prime London at a record high; prime inner London rents are now 15% higher than their pre-pandemic level, while those in prime fringe are 9% higher.

“The political and economic turmoil has eased in recent weeks but the prospects for the housing market are still a cause for concern, with most commentators now expecting house prices to fall in the mainstream market over the course of 2023,” said Anthony Payne, managing director of LonRes. “Mortgage rates have been rising steadily over the year, stretching people’s ability to buy.

“While the prime London market is less exposed to higher mortgage rates and any price falls here are likely to be less severe, we are seeing caution among prime London buyers and sellers. Many are sitting it out waiting to see what happens next. That caution is most obvious in the fall in number of properties going under offer,” Payne added.