Transactions slump by a fifth in Central London as Brexit bites

The Central London prime housing market has continued to take a hammering, latest research by housing data platform LonRes has revealed.

Its analysis of the sales market within the capital’s prime postcodes during the final three months of 2018 have unearthed some alarming results, including a year-on-year 20% drop in instructions and a 13% reduction in transactions. Just over two thirds of respondents to the survey blamed this all squarely on Brexit.

Also, 63% of the agents quizzed by LonRes said house prices in their area had reduced by 10% or more since the peak of the market.

“Despite the Brexit fog having turned into more of a pea-souper we have seen a number of high value deals being agreed in the last few months,” says Marcus Dixon, Head of Research at LonRes (left).

“Yet, while the world’s wealthy appear to be seeing value and opportunity in prime London, many are still postponing their decision to buy.

“In an uncertain market the response by both buyers and sellers in prime London has been to hunker down and observe rather than participate.”

The  report also reveals how more vendors are withdrawing their homes from the market, but offers some rays of hope.

It says agents are reporting an increase in the time between under offer and exchange and that these deals struck in the final months of 2018 could well still translate into sales.

In the lettings market, the tenant population is growing as fewer people buy which, coupled with a reduction in stock, has pushed up rents recently across most of central London.