Cluttons has released its latest (June 2019) Residential Market Outlook for Prime and Core Central London, which is predicting a surge of new listings across the capital once Brexit is resolved, resulting in a “sharp correction”.
The firm says that despite the fact that Brexit continues to dominate the headlines, resilient buyers still sought to close deals across the capital before the 29 March deadline, while others are watching and waiting for a clarity and certainty that, despite the extension, remains elusive.
Major findings from the report include:
- Annual price growth across London during Q1 at its lowest level since 2009
- Price negotiation remains a significant factor with properties selling for an average 12% discount on the asking price
- Sales volumes down 4% on a year ago
- A supply/demand imbalance points to an uplift in rental prices in the coming months with annual rental price growth at its strongest in 16 months
- For Central London, Cluttons anticipates a 3% fall in values over the course of this year but confidence to return once the Brexit uncertainty recedes
- Except for 2019, Cluttons expect London to outperform the UK during 2020-2022
- Cluttons anticipates rental price growth will outperform sales across Central London in each of the next four years with cumulative growth of 8%.
James Hyman, head of residential at Cluttons, commented: “We are beginning to see more activity out there but only at the right price. Sellers who are prepared to price their properties sensibly will get offers. For example, we marketed three properties last week at 15-20% lower than the original price – within 48 hours we had multiple offers.