The prime London sales market slowed as expected in November after a record-breaking October. This is according to the latest data from property analyst LonRes which reveals that transactions in November were 4.2% lower than last year across prime London and 19.4% lower than the 2017-2019 (pre-pandemic) November average.
However, the number of properties going under offer rose by 20.4% compared to last November – four of the last five months have seen 20%+ growth on this measure on an annual basis.
New sales instructions rose by 4.4% in November compared to the same month last year, which was 19.5% higher than the 2017-2019 (pre-pandemic) November average. The number of homes for sale at the end of November was 10.1% higher than a year earlier.
Across prime London, average achieved prices fell in November by 1.8% on an annual basis in November and were also 1.8% lower than average 2017-2019 (pre-pandemic) levels.
The £5m+ market also saw lower activity in November following a strong October. Transactions were 7.1% lower on an annual basis and under offers fell by 14.7%. New instructions in this market increased by 7.0% compared to last November, with available stock on the market rising by 23.3% over the past 12 months.
Annual rental growth across prime London increased slightly to 1.6% in November, but the general trend over the past 12 months has been low, steady growth. Average rents were 34.6% above their 2017-2019 (pre-pandemic) average (table 1).
LonRes data for November indicated an annual decrease of 12.5% in lets agreed and a 15.6% decrease in new instructions, with activity on both measures remaining well below pre-pandemic levels. The stock of available rental properties across prime London at the end of November was 8.7% lower than a year earlier.
Commenting on the findings, Lon Res head of research Nick Gregori said: “November was always going to seem quiet compared to October but, in context, the latest data suggests that activity in the prime London sales market is improving.
“October and November combined recorded almost a quarter more sales than the same two months last year. There’s more choice for buyers but there were also more properties going under offer, indicating further growth in sales in the pipeline. Feedback from agents suggests they are focusing on getting potential buyers and sellers ready for a renewed push in the new year.
He added: “Values are a less positive story, with price growth remaining stubbornly flat despite the recent flurry of transactions. With stamp duty, borrowing costs, and the price of building works all rising in recent times the pressure on values has been mostly downwards, regardless of any increases in demand. Prime central London is probably most impacted by these factors, so it is no surprise that values have struggled the most in the highest value markets.”
