The prime London sales market saw a bounce-back in transactions in July, although prices continued to fall, according to the latest analysis of the prime London housing market by property analysts, LonRes
Values across prime London fell by 4.9% on an annual basis in July, remaining broadly in line (+0.6%) with 2017-2019 (pre-pandemic) levels.
Sales activity had its most positive month of the year so far, with 8.7% more transactions recorded than July 2023, 23.7% above the 2017-2019 (pre-pandemic) July average.
The number of properties going under offer also increased in July, up 23.6% compared to the same month last year. Some of this growth is explained by June’s poor performance, when the sales market slowed in the run up to the election and deals were put on hold. But the immediate bounce-back suggests sentiment is moving in the right direction.
New sales instructions in July were unchanged from last year, 2.3% higher than the 2017-2019 (pre-pandemic) July average. The stock of available homes for sale continues to rise, with 11.1% more properties on the market across prime London at the end of July than a year earlier.
The £5m-plus price point underperformed the wider market again in July, continuing the reversal of recent trends. £5m transactions were down by 18.9% on an annual basis, although this is 34.3% above the 2017-2019 (pre-pandemic) July average.
At the end of July there were 27.4% more £5m+ properties for sale than a year earlier.
Commenting on the findings, LonRes head of research Nick Gregori said: “July is typically a quiet month for the prime London sales market due to summer holidays, but this July has been a little different.
“Transaction levels bounced back from a slow June, with delayed deals and pent-up demand from the pre-election period pushing sales well above both July 2023 and the average for the time of year. The key question looking ahead is how sustainable this improvement is – are the conditions in place for a sustained recovery?
He added: “On the positive side, the much-awaited first base rate cut was delivered in August by the Bank of England. Many lenders responded by lowering mortgage rates, with some deals falling below the 4% mark. Even in a market with lots of equity and a high proportion of cash buyers like prime London, this is an important boost to sentiment. Agents will be hoping that the ‘wait and see’ game being played by buyers and sellers might be coming to an end.”
