Pent-up demand continues to build in prime London sales markets
While political uncertainty remains, there are signs pent-up demand is now being released in prime London markets. This is taking place initially in higher-value markets, where demand is subject to a wider and more complex set of factors, including wealth flow patterns and currency movements
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The number of exchanges above £2 million rose by 1% in the year to April compared to the previous 12-month period. There was a 9% decline across all price brackets, which underlines how pent-up demand in higher-value markets is being released to a greater extent following stamp duty-related price adjustments.
This same trend is borne out by the fact that transaction volumes across all price brackets are rising to a greater extent in higher-value areas of the capital. In central London neighbourhoods, exchanges rose by 7% in the year to April, while the increase was 17% in north London, according to Knight Frank data.
Viewings have risen for properties worth more than £2 million. There were 3% more viewings in the first quarter of this year than the same period last year, the first such increase since 2017.
Pent-up demand continues to build
The number of offers made by buyers has risen by more than a quarter since the start of last year. Over the same period, the number of new properties listed for sale has fallen by over a third, underlining the relatively advantageous position for active vendors, particularly should the current political uncertainty recede.
Download the May 2019 Prime London Report
The prime London sales indices are based on repeat valuations of second-hand stock and do not include new-build property, although units from completed developments are included over time.