Property deals in central London are falling through at a much faster rate than in previous years.

There is also a significant drop in the number of offers being placed on prime homes in the capital, according to proptech firm LonRes.

Fall throughs were 80% higher than the 2017-19 average in October, following a similar trend in September.

Sales fell through, properties were withdrawn from the market, and price reductions spiked, LonRes says.

Sales held firm with the total number 12.1% higher than the pre-pandemic average and 11.6% higher than the same month last year.

But perhaps the most concerning metric over the last month was the fall in properties put under offer, says LonRes.

Following the mini-budget, the number of properties put under offer was below the 2017-19 average for the first time since June 2020 at -9.2%. This was 20.3% below last year’s figure for October.

Rents rising

Average rents per square foot are still rising rapidly in all parts of prime London. The average rent in all three areas – Prime Central, Prime Inner, and Prime Fringe – have surpassed their pre-pandemic peaks and are now well above previous levels.

Anthony Payne, managing director of LonRes, says: “While the prime London market is less exposed to higher mortgage rates and any price falls here are likely to be less severe, we are seeing caution among buyers and sellers.

“That caution is most obvious in the fall in number of properties going under offer,” he says.

“Rents are still rising rapidly across prime London, hitting a new record high, as the shortage of property available to rent drives competition among renters looking for a home.”