12 Feb 2020
Property data network, LonRes highlighted how during the last quarter of 2019, house price growth in London increased by 2.4%. The analysis showed how this rise is the first since over a year.
Dealings and transactions in prime London were up by 34% in the fourth quarter of last year, pushing for further competition in the main parts of the city.
Head of research at LonRes, Marcus Dixon explained, “The fortunes of the prime central London sales market began to turn in Q3 2019 and the announcement of a general election did little to derail momentum over the fourth quarter of the year.”
The increase in growth is the first to occur in six quarters.
Dixon continued, “In prime central London both pre and post-election activity increased, with the market at its busiest for three years. Outside central London the market was quieter, albeit with volumes still higher than in 2018.”
The research carried out indicated that there was an 80% increase in the number of properties under offer in Prime Central London in the first month of the year, compared to the same period in 2019.
Prices of around 69% of the properties are expected to continue to rise throughout the year, whilst 5% are forecast to drop in price.
“A positive shift in sentiment resulted in more new buyer registrations and an increase in the number of properties going under offer, which continued into the new year,” Dixon said.
“For lettings, a shortage of stock continues to support rents. Rents rose 3.5% in the final three months of the year – the ninth consecutive quarter. Looking ahead, with optimism returning to the prime market, agents have started a new decade with renewed vigour and a positive outlook on prices, rents and activity.”
“This is a view we share and with buyers looking more favourably at the prime market there is an opportunity to unlock some of the significant pent-up demand which we have seen building over the last five years. But there are a few unknowns which could prove a curveball over the coming year. We are still unsure how well the economy will react to the next stage of Brexit negotiations or if the March budget will benefit or hinder the recovery in central London.”