November 2023’s analysis of the prime London housing market by LonRes shows a 4.1% decline in sold prices compared to last year. This decrease comes despite prices being 1.6% higher than their level five years ago, and 4.1% higher over a 10-year period.
Sales transactions also experienced a downturn, falling 32.1% compared to last November. This year’s sales, however, are projected to be just below the long-term average. The market saw a decline in properties going under offer by 8.6% year-on-year, but new sales instructions rose by 5.0%, leading to a 5.9% increase in market stock across prime London.
In the high-value sector of properties priced over £5 million, there was a slight 1.4% increase in new instructions, but sales dropped by 28.1%. In contrast, the number of properties going under offer in this segment rose by 16.1%.
The rental market in prime London also witnessed changes, with the pace of annual rental growth slowing to 6.9% in November, the lowest in two years. However, rental prices are still 31.9% higher than the pre-pandemic average from 2017-2019. Rental property supply saw a rise with new instructions up by 14.5% year-on-year, though agreed lets decreased by 6.7%.
Nick Gregori, head of research at LonRes, commented: “November provided some emerging signs of improving sentiment in the prime London sales market. With inflation moving towards the 2% target and a reduction in mortgage rates from recent highs, we’re seeing an increase in market appraisals and buyer enquiries. However, this hasn’t yet translated into a significant increase in agreed deals.”
He added: “Our data for November showed a decrease in sales values and transactions compared to last year. The £5m+ market, while cooling, remains active. In lettings, the market is experiencing its usual end-of-year slowdown, with a steady but slowing rental growth.”
