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Sales levels in London's poshest postcodes are lower than during the financial crisis

The ongoing turbulence in London’s residential property market has been highlighted by some alarming new analysis by property investment firm London Central Portfolio (LCP), which has found that sales levels in prime central London are at their lowest levels on record.

According to LCP’s analysis of Land Registry data for the first quarter of this year, just 3,406 sales took place on an annual basis, representing a fall of 41% over the period.

Perhaps most eye-catching of all, the investment company’s findings suggest that sales levels have even dropped below the levels seen during the global financial crisis back in 2008/09, as the faltering UK economy and worsening new build crisis put pressure on the market.

It is not all doom and gloom however, as LCP’s figures also show that prices across London’s poshest postcodes have recorded a slight increase since the Brexit vote, reaching an average of just over £1.9m in line with quarterly price growth of 4.6%.

That being said, a hefty chunk of this increase has been fuelled by a greater proportion of more expensive transactions going through, with an annual increase of 8.5% in the number of transactions between £2m and £5m.

Naomi Heaton, Chief Executive Officer of London Central Portfolio sees much of this increase in big value properties being driven by overseas buyers attracted to UK property due to the weakening pound.

She said: “The increase in average prices is likely to reflect a greater proportion of higher value properties being sold, rather than any real underlying price growth. Transaction data shows that the £2m to £5m bracket was the most active last year, reflecting the only annual increase in sales (8.5%).

“This can, in part, be attributed to international homebuyers taking advantage of significant price discounts offered on top-end properties and beneficial currency exchange rates. Prices are now 13% cheaper for dollar denominated investors than the beginning of 2015.”

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