Real Estate Transactions Falling, Demand Increasing in Prime Central London
Even though transactions are falling in prime central London’s property market, there is increasing demand for homes in the capital, according to a report Thursday from Knight Frank.
Curbing sales volume in the city is the uncertainty surrounding the outcome of Brexit, according to the property consultant and estate agent. In the year to August, there were 9% fewer transactions in prime central London than the previous 12 months.
“This decline contrasted with an increase of 7% recorded in the year to March,” said Tom Bill, head of London residential research, in the report. That was a sign that transactions had begun to recover following 2016’s E.U. referendum. However, as the Brexit date in March approaches, volumes have receded, the report said.
Political uncertainty has also taken its toll on prices.
Average prices in the area fell 2.9% in the year to September, the report said, exacerbated earlier this year by an increase in supply as more landlords sold or listed their property in a response to tax changes across the sector.
But as transactions and prices fell, 12.5% more new prospective buyers registered in the third quarter than the same period in 2017 and the total number of all prospective buyers was up by a fifth in the same time.