London prime sales rise and fall
Summary
Knight Frank data shows prime London sales activity has risen in the latest three-month period, but exchanges remain below recent and five-year averages, with the comparison affected by stamp duty changes and mortgage rate repricing. In lettings, rental supply remains constrained and rents continue to rise in both prime central and prime outer London, with landlords adjusting pricing in response to changes linked to the Renters’ Rights Act.
Why it matters
Surveyors involved in valuation and market commentary should note the divergence between sales volumes, prices and rental conditions in prime London. The article also highlights how legislative change and supply constraints can influence asking rents and market behaviour.
Key points
- Prime London sales rose in the latest three months, but exchanges remain below five-year norms.
- Prime central London prices are still well below their 2015 peak and have fallen annually for 39 consecutive months.
- Prime outer London rents continue to increase, supported by tight rental supply.
- New rental listings in prime central and outer London were below the five-year average in the first half of the year.
- Landlords are reportedly adjusting asking rents in response to changes within the Renters’ Rights Act.
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