Price reductions plummet as buyer demand begins to drive London market recovery

The number of properties with price reductions in London has fallen with confidence returning to the central market in particular, according to new research.

There were 35% fewer property price reductions in London in the first five months of 2019 compared with the same period last year, as buyer demand becomes more buoyant and activity rallies.

Indeed, buyer registrations since the start of the year are up 19% on 2018 across the capital, according to the research from London estate agency Chestertons, with the biggest rise of 32% in areas such as Chelsea, Westminster, Mayfair and Knightsbridge.

As a result, activity in the London market is beginning to pick up, with exchanges in May jumping 23% year on year across the capital.

However, the supply of new properties coming onto the market for sale is still lagging significantly behind last year, down 15% over the first five months of 2019 compared to 2018. In central London, instruction levels in May were 20% lower than last year.

Guy Gittins, managing director at Chestertons, said:

‘With confidence comes an acceleration in activity and that’s what we’re seeing as buyers shrug off the current political uncertainty and the London housing market starts moving again.

‘This has been the most encouraging start to the year we’ve witnessed since the European Union referendum result, and the change in buyer appetite is palpable. The brakes may have been on at the end of last year, but motivated buyers have been quick to recognise the opportunity presented to them by property prices now offering genuine value for money, and demand for properties is consequently overwhelming the current levels of supply.

‘That it’s central London which is spearheading this recovery is particularly encouraging for London’s long-term outlook, in a sign that overseas buyers are returning to capitalise on the attractive investment opportunities on offer.

‘The recent upswing in buyer demand means it’s much more likely that a property will sell for its asking price compared to a year ago, as competition for available homes ramps up. And this is only the start. We know there’s a huge amount of pent-up demand in the market, and once there is greater clarity over Brexit, more buyers are going to be getting off the fence and flooding into the marketplace.’

Kindly shared by Property Wire