The prime London housing market slowed over the summer, with sales volumes and achieved prices falling in August, according to the latest analysis from LonRes.
Transactions were down 23.9% compared to the same month last year, while average achieved prices dropped 3.1% annually.
At the top end, £5m+ transactions fell by 35%.
But there were signs of renewed activity ahead. Under offers were up 13.3% year-on-year in August and have now risen for three consecutive months – suggesting sales could pick up into autumn.
On the supply side, new instructions increased 10.8% annually in August, while price reductions grew for the tenth month in a row. Available stock for sale was 17.7% higher than a year ago.
BUYER CAUTION
In the lettings market, rental growth accelerated to 4.3% annually, with rents now 37.3% above pre-pandemic averages.
Despite a rise in new instructions and agreed lets, overall activity remains well below historic levels due to limited supply.
Nick Gregori, Head of Research at LonRes, said higher supply and price reductions are pushing values down, while uncertainty around potential property tax reform is adding to buyer caution.
