London sales hit all-time low level
Property prices in Prime Central London appear to be stabilising, following a period of volatility, said LCP.
The real estate investment advisory has recorded marginal price increases with growth in quarter four standing at 2.4%. This takes the average price in Prime Central London to £1,761,210.
However, transactions in the centre of the capital remain significantly down, falling 9.5% across the year to just 4,183 sales over the year.
This represents the lowest-ever number of annual sales on record and a 34% drop since 2013.
Naomi Heaton, CEO of LCP, said: “Prime Central London (PCL) has experienced unprecedented pressures over the last few years with the introduction of new taxes targeted at the residential sector and London in particular.
“On top of this, an unsettled political backdrop and the slow progress on Brexit negotiations has further dented sentiment, resulting in a picture of price volatility and falling transactions.”
Greater London sluggish
Greater London continues to see a slowing picture, with six successive monthly price falls taking average prices to £598,558, after a 3.8% fall in Q4 of 2017, said LCP.
Transactions also continue to decrease, down 7% over the quarter and almost 10% over the year. In fact, sales are now 44% below 2007 levels.
Heaton noted: “Greater London continued to see a worsening picture at the end of 2017 with average prices falling below £600,000 for the first time since 2016.
“Slowing sales volumes and prices reflect affordability issues and caps on mortgage lending which have hampered buyers’ ability to trade up or get onto the housing ladder. Concerns about Brexit, rising inflation and interest rates have also impacted the ‘feel good’ factor which drives buyers’ decisions.”