Two separate reports were issued last week by LonRes and London Central Portfolio (LCP), both of which point to a major downturn in demand and prices in the capital.
LonRes Residential Review – Spring 2018
The Review provides analysis of the prime London housing markets including Q1 2018 sales and lettings results. Analysis of LonRes sales data for Q1 2018 revealed that the LonRes three prime areas (prime central, prime and prime fringe) fell by an average of 3% compared to the same period last year.
However, the market for properties priced over £2m is now outperforming the market below £2m. Across the LonRes three prime areas, homes sold for £2m or more achieved an average of £1,769 per square foot in Q1 2018, up 3.2% on the same period a year ago. For those homes sold under £2m (£1,038 sq ft), prices fell by 5.8% in Q1 2018 compared to Q1 2017.
This reflects a reversal in fortunes for these two segments of the market. Two years ago homes sold at £2m or more recorded annual falls of 5.5% compared with growth of 4.4% for those priced under £2m.