The prime London property market saw little change throughout 2024, according to analysis from independent property analysts, LonRes.
Achieved sold prices in prime London ended the year down by 0.5%, with prices 2.1% higher than five years ago but 6.0% lower than 10 years ago.
In December, transactions were down 7.6% compared to the previous year, but overall transactions for the year were up 4.9%, aided by a busy October.
Sales volumes for the entire year were 10.0% higher than the pre-pandemic average from 2017 to 2019.
Properties going under offer increased by 16.0% year-on-year, with the full year’s total up 6.7%.
New instructions surged by 28.6% in December, leaving the full year’s figure 10.5% higher than 2023.
By the end of December, there was 10.7% more stock on the market across prime London than a year earlier.
The £5m plus market saw a slowdown, with sales volumes down 4.1% in 2024 compared to 2023.
However, this was still 36% higher than the 2017-2019 average.
In addition, new instructions in this segment increased by 25.2%, resulting in 23.8% more £5m plus homes available compared to the previous year.
Rental growth across prime London rose to 2.5% in December, maintaining a trend of steady growth.
Average rents were 31.9% above their pre-pandemic average from 2017 to 2019.
However, let agreed fell by 18.9% and new instructions decreased by 26.3% in December compared to 2023.
For the full year, lets agreed rose by 2.3%, while new listings increased by 0.8%.
Meanwhile, the stock of available rental properties at year-end was 12.3% lower than the previous year.
Nick Gregori, head of research at LonRes, said: “In short, the prime London sales market in 2024 saw values decrease and activity rise, but both of these changes have been small.
“For the full year, sales volumes increased by around 5% compared to 2023 and new instructions rose by approximately twice that over the same period.
“Values finished 2024 only 0.5% below where they started it.
Gregori added: “This performance is a result of confidence in the housing market and wider economy being relatively weak.
“The change in government and subsequent Budget announcements didn’t help sentiment but are now behind us and ‘priced in’.
“People who need to buy or sell are therefore continuing to do so but those in more discretionary markets remain in no rush, having seen little price movement for many months.
“The opportunity for a stamp duty saving before April may introduce an element of urgency, but in prime London the figures involved are small compared to purchase costs.
He said: “The £5m+ price point has been most impacted by tax changes and has fallen back from a strong performance in 2022 and 2023.
“Supply continues to rise in this market but demand has not kept pace as overseas (potential) buyers appear reticent on London as an investment destination.
“The longer-term context is that the top end of the market remains more active than it was pre-pandemic.
“Despite the slowdown, 2024 saw 36% more £5m+ sales than the 2017-2019 average.
He added: “The outlook for 2025 is unclear, with so many external factors potentially impacting the market.
“Donald Trump’s return to the White House – promising tariffs and tax cuts – could be inflationary for the global economy.
“In turn this could limit the scope for interest rate cuts here regardless of domestic economic growth.
“So the much-awaited fall in mortgage borrowing costs may be slower and smaller than hoped, dampening prospects for a stronger recovery.
He said: “The prime London letting market had a quiet December, bringing a quiet year to a close.
“Activity for the full year was very much in line with 2023 as the post-pandemic recovery stalled, limited by shrinking available stock at all price points up to £2,000 per week.
“Rental growth of 2.5% is broadly in line with inflation.”
