London’s Prime property market goes from ‘frenzied to…

Prime sales activity in London remains above pre-pandemic levels despite an annual decline, figures show.


Analysis of the main London market for the first half of 2022 by data firm LonRes shows sales fell 29% annually, but were still 19% higher than in the first halves of the three years before the pandemic.


Prices in prime London also continued to rise in June, up 7.2% on the year and 1.6% from their pre-pandemic average, LonRes said.



Parts of the market continued to show robust signs of activity, according to the analysis.


The high end of the market – homes priced over £5million – are still seeing activity in line with 2014 levels and sales in the year to June were 11% higher than the same period of 2021.


This compares to the £2-5m slice of the market where activity is currently only 1% higher than the same period last year.


Meanwhile, home sales remain stronger than apartment sales as the post-pandemic world where space — indoors and out — has been pushed onto buyers’ wish lists.


Home sales are just 12% below their 2013-14 peak levels, while apartments are 37% lower.

Anthony Payne, chief executive of LonRes, said: “Prices in prime London continue to rise, although this partly reflects the rapid growth of last year and we expect annual price growth to slow. during the second half of 2022.


“In the meantime, activity levels have fallen from last year’s stamp duty, but are still above levels seen in the years before the pandemic.


“As we come to the end of the first half of the year, all selling indicators show that the prime real estate market in London is moving from a frenetic period to a more normal one.


“Last June, buyers were racing to strike deals to meet the stamp duty deadline and the June figures for this year reflect that.”









Main sales

Top notch rentals

Annual


To change

Change since 2017-19

Annual


To change

Change since 2017-19

Prices/rents reached

7.2%

1.6%

28.0%

14.4%

Transactions/ new rentals

-63.3%

4.4%

-46.2%

-47.8%

New instructions

-6.7%

19.6%

-28.5%

-44.6%


Source: LonRes