The prime London housing market has witnessed a slowdown, with both prices and activity levels falling in March, according to independent property analysts LonRes.
The data reveals that achieved prices were 4.9% lower than March last year, marking the largest annual fall since August 2019.
Rental growth slowed to 7.3%, which is the slowest rate of growth since September 2021. Sales activity in the prime London market also declined by 21.9%.
Anthony Payne, managing director of LonRes, commented on the findings: “The prime London housing market slowed over March. Prices, transactions and properties going under offer were all down over the month, while new instructions rose. It seems as though the market, which is now back to pre-pandemic times, is finding a new level.”
Despite the slowdown, the rental market continues to suffer from a lack of stock, with new lets in March 16.9% lower than last year. Payne added, “In contrast, the rental market continues to suffer from a lack of stock and with tenants staying put, inactivity is impacting all levels of the market, especially the less expensive prime London rentals.”
Even though the market is experiencing a slowdown, demand for turn-key properties remains strong.
Payne further explained: “Agents tell us that good properties are being snapped up and for turn-key properties, where little work is needed, buyers are prepared to pay a premium.”
As the market adjusts to its new level, it remains to be seen how it will evolve in the coming months, particularly with the ongoing challenges in the rental market.
