CENTRAL LONDON MARKET UPDATEQ3 2018

Following a pick-up in activity toward the end of 2017, market activity in central London has flattened out in 2018. As taxation continues to stifle investment in central London property and Brexit negotiations (or lack thereof) remain at the forefront of the media, we’re experiencing a largely unchanged market. Potential buyers and sellers, and particularly investors, continue to hold off on their plans until political uncertainty has eased and we have a clearer idea of the post-Brexit market.

There is still movement, however, and properties priced correctly are selling well. The current market is being driven by ‘needs-based’ buyers looking for value rather than investment. As such, small to medium sized

flats have dominated transactions not just in the past quarter, but over the year. A shortage of supply for good size family homes means they are being snapped up when they become available, but fewer of these are coming to market as a result of uncertainty.

Despite the slower market, the quality of homes we’ve seen coming to market has improved and this is reflected in the average price per square foot which has increased while actual asking prices have decreased.

Overall, although sentiment is very different to this time four years ago, it’s evident that there is still stability in the market, and we expect it to remain much the same for some time until a clearer outlook for the UK is given.

The average price sold per square foot increased in the quarter by 6%, although average asking price and average sold price decreased by 2.1% and 2.2%, respectively. This demonstrates the better quality of stock coming to market, so although prices are slightly down, the quality of properties on the market is actually better. With property prices now spread more widely across similar type properties with different characteristics, it’s all the more important that sellers seek agents who can offer bespoke services to suit their specific property needs.

Transactions remained static compared with both the previous quarter and the same quarter last year. They were almost 30% below the peak levels seen in 2014, before the stamp duty changes came into effect.

Transactions for smaller properties dominated activity in Q3 2018, with one and two bedroom homes accounting for 67% of all transactions.

PRICES

1 bedroom 2 bedrooms 3 bedrooms

4 bedrooms 5 bedrooms+

+6%Q3 2018 v Q2 2018

£1,201AVERAGE £/SQ FT

TRANSACTIONAL VALUES

36%

31%

18%

13%

2%

“We’re encouraged by the increased applicant levels we’ve seen over the past two quarters

compared with the same period last year, which signal some underlying positivity in the market and shows that buying in central London remains a popular choice. It’s important to note, however, that despite this clear interest from buyers, this may not necessarily feed through to transaction

or price changes further down the line as uncertainty and tax rules keep a lid on activity.

“What has now become evident is the price disparities between similar properties on the market due to their varying characteristics. As such, it’s all the more important for sellers to seek a quality bespoke service from agents who have proven experience and longevity within this highly complex market, who can provide guidance based on years of knowledge and practice.”

DOMINIC AGACE, CEO AT WINKWORTH COMMENTS:

Winkworth Press Office020 7355 0220 | 1 Lumley Street, London W1K 6TTpressoffice@winkworth.com

VIEWINGS

NEW APPLICANT REGISTRATIONS

20AVERAGE VIEWINGS

BEFORE SALE Q3 2018

-20%Q3 2018 v Q2 2018

+28%Q3 2018 v Q3 2017

-52%Q3 2018 v Q3 2013

The level of new applicant registrations increased by 28% against the same quarter last year, but followed the trend of dipping slightly following a traditionally stronger Q2 this year. Evidently,

demand from buyers is still there and shows no sign of slowing even in the run up to Brexit.

NEW APPLICANTS REGISTERED

Q1

2013

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2014

Q1

2015

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2016

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2017

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2018

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2013

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2014

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2015

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2016

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2017

Q2

2018

Q3

2013

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2014

Q3

2015

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2016

Q3

2017

Q3

2018

Q4

2013

Q4

2014

Q4

2015

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2016

Q4

2017

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200

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