Summer was not so hot in Prime Central London – report
LonRes Research says August saw falls in transaction volumes across prime London for both sales and lettings.
Although summer is often slow, LonRes says activity in prime London’s sales and lettings market was lower than normal for the time of year and was a marked contrast to the growth seen in July.
There were 7.5% fewer sales transactions in August compared to a year earlier, while there were 3.3% fewer transactions than pre-pandemic 2017-2019.
But the number of properties going under offer – a forward indicator – were more positive, growing by 5.1% compared to the same month last year.
And supply levels are improving, with new sales instructions in August 8.1% higher than last year and stock levels were up 11.9%.
There is a danger that both buyers and sellers move back to a pattern of ‘wait and see’ ahead of the Budget and potential further interest rate cuts.“
At the upper end of the market (£5m+) supply though continues to run some way ahead of demand, as it has been the case for much of 2024. As a result, transactions were down by 47.2% on an annual basis, and there were 30.1% more £5m+ properties for sale than a year earlier.
Decreases
In the rental market, although average rents across prime London have risen by as much as 31.6% above their 2017-2019 levels, LonRes’ data for August indicated an annual decrease of 14.5% in lets agreed and a 7.7% decrease in new instructions.

Rents did still rise though, up 2.6% annually, although stock fell slightly on a month-to-month basis but grew annually by 6.0%.
Commenting on the findings, Nick Gregori, Head of Research, said: “The PM and Chancellor are trying to find a balance between being too negative about the state of the economy and making their case for spending cuts and tax rises.
“Either way, it is not the best for improving sentiment in the housing market. There is a danger that both buyers and sellers move back to a pattern of ‘wait and see’ ahead of the Budget and potential further interest rate cuts.“