Long-term trends show prime London’s housing market is continuing to strengthen, according to analysis from LonRes.
Prices and rents have both continued to rise rapidly with achieved prices in Prime London during March coming in some 6.3% higher than the same time last year. Rents were 25.9% higher over the same period.
Transactions in March were 34.5% lower than the stamp duty driven boom of 2021 but properties under offer, a lead indicator, suggest an increase in activity over the coming months with 41% more than the average recorded in the three years leading up to the pandemic.
The top-end of the market continues to out-perform, with sales of £5m plus properties 100% higher than March 2019 levels and 14% higher than March 2021 levels.
Meanwhile, the rental supply squeeze continues to bite, with stock available to rent in March 64% lower than March last year and new lets down 52% over the same period.
Anthony Payne, managing director, LonRes, said: “As we enter Spring, the prime London market is looking strong.
“While a lack of stock continues to be a problem, it seems buyers are buying. Properties going under offer – a lead indicator of the health of the market – are now 41% higher than the average recorded in the three years leading up to the pandemic – arguably a more normal period than the stamp duty driven one of the last two years.
“And it’s the top-end of the market that continues to outperform. Properties priced at over £5m are particularly in demand, undoubtedly helped by the continued low cost of borrowing – even taking into account recent and predicted interest rate rises.
“Property prices too are on the up – both in sales and lettings. Year-on-year property prices were up 6.3% in March, while rents rose by 25.9% on an annual basis.
“Anecdotally we’re hearing that buyers – predominantly domestic rather than international (at least for the time being) – are returning to London’s prime areas.”
