Date Published 06 December 2018
The capital has suffered more than the rest of the country in the wake of tax increase, while Brexit has also had a greater impact due to the more international make-up of the population. It is encouraging, however, that there has been a noticeable increase in buyer interest with registrations and viewings both up on last year. Figures in Q3 2018 compared to 2017 showed that buyer registrations were up by 30% and viewings by 28%, suggesting that there was considerable pent up buyer demand towards the end of the year.
Prices in higher value locations were 17% lower than they were in the peak in 2014.
Buyers have remained price sensitive and prices in the more expensive locations, especially in central London, have experienced further decline this year. However, there are signs that the gap between vendor and purchaser expectations is narrowing as the rate of decline has slowed. We have even seen sought-after properties attracting competitive bidding and, in some cases, exceeding asking prices in pockets of the capital. For example, average house prices in Pimlico currently sit between £1,200 - £1,500 £/sqft but the last property our Pimlico office sold (a first-floor apartment on one of Pimlico's garden squares) achieved a record price of close to £1,700 £/sqft.