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THE CURRENT STATE OF LONDON’S PRIME HOUSING MARKET


London’s prime property market faces a challenging landscape
post-stamp duty holiday. Mortgage approvals are over a third below the
five-year average, reflecting weakened demand amid rising rates and the Bank of England’s inflation struggle. The market contends with election uncertainty and global conflicts, fostering a pervasive sense of unpredictability.

Prime London postcodes mirror this sentiment. October 2023 activity echoes 2022’s turbulence, with marginal increases in new prospective buyers and exchanges but a modest decline in viewings.

Notably, a surge in higher-value lettings properties indicates sellers’ reluctance to commit. Rental properties above £1,000 in prime central London rose 22% from last year.

Cash buyers and housing equity offer some protection, but overall sentiment remains subdued. Average prices in prime central London fell 1.6% in the year to October, with a 1.2% decline in the last six months—the most significant quarterly fall since the stamp duty holiday.

Prime outer London sees a 1.4% price drop for the second consecutive month, reflecting cautious buyers. London’s prime property market grapples with economic uncertainties and global tensions, with hopes pinned on potential government interventions outlined in the upcoming Autumn Statement.

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