The Prime London housing market is showing signs of returning to pre-pandemic levels of activity, according to a new analysis of data by independent property analysts, LonRes.
While the number of properties sold during February was 33% lower than last year, it was only 9.1% lower than the 2017-19 average.
The number of properties under offer, a leading indicator for sales, was 10.5% higher than the pre-pandemic average.
The number of new instructions also continued to rise, with figures 14% higher than February last year and 23.6% higher than before the pandemic.
Prime London house prices have fallen 2.8% over the last year and are just 1.7% above their pre-pandemic levels.
The rental market is still experiencing a severe shortage of stock, with new lets 59.4% lower than before the pandemic and rents up 8.4% over the last year.
The analysis shows that the longer it takes to sell a property, the bigger the discount to the asking price, with the average discount for homes sold in under three months being -3.5%, compared to -14.5% for properties taking more than a year to sell.
Anthony Payne, managing director, LonRes, said: “We’re continuing to see a rise in new instructions coming to the market. In February they were 14% up on the same month last year and 23.6% higher than before the pandemic.
“This means there is more choice for buyers. And while there appears to be no let up in buyers looking to purchase, there also seems to be no urgency in them committing to a sale. For serious sellers out there, asking prices need to reflect the mood-change in the market.
“Meanwhile the prime London lettings market continues to suffer from lack of stock but no lack of tenants. Tax changes aimed at buy-to-let investors have undoubtedly impacted the sector. Build to rent schemes while part of the rental solution, take time to come on stream and until stock levels rise or demand level falls, it’s difficult to see how the situation across prime London is going to change.”
