Independent property analysts, LonRes, have provided an analysis of the prime London housing market for February 2024, revealing a decrease in sales prices by 7.8% from the previous year, returning to levels last seen in early 2014. This drop situates average sold values 3.2% below the average of the pre-pandemic years from 2017 to 2019.
In terms of property transactions during February, the figures show a marginal decrease of 2.7% from the same period last year, holding more stable than the values. The number of properties that went under offer also saw a slight decline by 7.6% compared to the previous year.
The report also indicates a 1.0% annual increase in new listings, which is over 20% higher than the pre-pandemic average, leading to an increased stock of homes for sale. By the end of February, there was a 7.5% year-on-year rise in the number of properties available.
The luxury segment of the market, particularly homes priced over £5 million, remains robust with transactions in February 4.2% higher than the previous year and 25% above the pre-pandemic average for the same month. However, a considerable increase in stock is noted, with 26% more properties available compared to last year.
On the lettings side, prime London recorded a slight increase in annual rental growth to 3.4%, with values reaching 26.7% above the pre-pandemic average. The volume of agreed lets has risen by 14.2% year-on-year, though the figures remain significantly lower than pre-pandemic levels.
Nick Gregori, head of research at LonRes, said: “While sales volumes have seen a modest year-on-year drop and prices have retreated, the broader picture aligns with long-term trends, suggesting the market is operating within normal parameters.
“The high-end sector continues to outperform, yet with rising stock levels, the balance may be shifting. The rental market is showing potential signs of stability after a period of constrained supply, with metrics indicating a movement towards normalisation.”
