Prime London Property Market: A Struggle for Stability
The prime London property market is facing significant challenges. Recent data reveals a sharp decline in transaction volumes, raising concerns for buyers and sellers alike. In July, transactions fell by 31.7% compared to last year, and 7.8% compared to the pre-pandemic average. This decline is particularly notable in areas like Clapham and Brixton, where the market has traditionally thrived.
While new instructions increased by 22.4%, many homes are now seeing price reductions. The number of price cuts rose by around 60% compared to last July. This indicates a market struggling to find its footing, with many sellers becoming more realistic about pricing.
The increase in fall-throughs, up by 19.9% from last year, suggests a lack of confidence among buyers and sellers. Deals are taking longer to conclude, leading to uncertainty in the market. Buyers may be hesitant to commit, fearing that prices could drop further.
Interestingly, the rental market is also feeling the strain. Rental availability has reached a four-year high, while rental growth has slowed to 3.3%. This is a stark contrast to the 34.8% increase in rents compared to pre-pandemic levels. As rental prices stabilize, potential buyers may reconsider their options.
As a South London property expert, I see both risks and opportunities in this evolving landscape. Understanding these trends is crucial for making informed decisions in the property market.
What are your thoughts on the current state of the prime London market? Let's discuss!
#PrimeLondon #PropertyMarket #SouthLondon
If you are looking for help with your property in London – Sales, Rentals, Investments.
Reach out: 07837 093554 or email me at jeroen@claphampropertyblog.com
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