Central London’s residential property market has had a steady 12 months, seemingly weathering the worst of the storm whipped up by Brexit-related political uncertainty and rising stamp duty for top-end buyers, according to a report Thursday from London-based estate agent Winkworth.
While the second quarter of 2018 was more subdued than the previous two strong quarters, on the whole, the central London market remains stable, the report said.
High volumes of lower-value transactions in the second quarter pulled down the city’s average sale price 12.7% compared to the same time last year, though the average price per square foot now sits at £1,194 (US$1,566), a marginal increase on the second quarter 2017.
Transactions in the second quarter were down 4.4% on the strong first quarter, but were up by 7.5% compared to the same time last year, when some caution surrounding the April 2017 general election was reflected in transaction volumes, according to the report.
Meanwhile 92.4% of properties sold achieved their asking price, a figure fairly flat compared to the 92.6% achieved last quarter, and up from 91.4% at the same time last year.
“This year has seen what can only be described as an inverse market, with a busier than normal start to the year and an unusual lull through quarter two which is typically one of the busiest times of the year,” said Dominic Agace, Winkworth CEO, in the report. “Despite the inverse market, activity has stabilized significantly from the past few years and is now coming to a plateau where it’s still moving steadily, but far below the levels seen in the 2014 peak.”
Going forward, Mr. Agace noted that ongoing Brexit discussions and political turbulence will keep London’s market subdued until a clearer idea of exactly what Brexit deal and government changes will take place.