Prime London sales market slump deepening, says Knight Frank
New figures from major estate agency shows prime prices fell 3.2%, which is the worst figure since 2021.
A slump in the prime London market shows no signs of easing, new figures from Knight Frank reveal.
Average house prices in prime central areas fell 3.2% in the year to August, the biggest decline since March 2021, the agency says.
Largely flat
And in Prime Outer London, the picture is largely flat with average annual prices up just 0.5%, and a quarterly fall of 0.4% for the third consecutive month.
Meanwhile, sales transactions across central and outer London were 6% down versus the previous 12-month period.
Knight Frank has previously blamed the Government’s clampdown on so-called ‘non-dom’ tax rules for the slump in prime sales, buyers and prices.
60% drop
Recent figures released by Jefferies London showed the value of properties sold in London’s six most desirable boroughs dropped by as much as 60% over the last 12 months.
The number of new lettings properties coming to the London market in the year to August was 8% below the previous 12-month period, Knight Frank data shows.
As supply slips, rental value growth continues to hold firm. Rents grew by an average of 2% in prime outer London in the year to August, which was the strongest figure since October 2024.
The understandable mood of hesitancy, particularly in prime markets, continues to put downwards pressure on prices.”
Tom Bill, Head of UK Residential Research at Knight Frank, says: “The understandable mood of hesitancy, particularly in prime markets, continues to put downwards pressure on prices.
“In Prime Outer London (POL), the picture was largely flat in a market that is driven to a greater extent by buyers who need to move for reasons that include schooling and jobs.”
