Following a sustained period of price reductions throughout 2017, Chestertons’ figures show that prospective buyers flooded back into the market in January 2018, possibly with the view that the London market had corrected itself to a level that started to represent relative value again. The company also recorded its highest January sales figures since 2014 on the back of high levels of activity throughout the last six months of 2017.
The company’s figures also suggest strong signs of improvement in Prime Central London. The increases to stamp duty, heightened political uncertainty, as well as greater exposure to capital gains tax and inheritance tax for overseas buyers, meant that consumer confidence in the high-value London property market has been fragile for some time. However, after a period of price corrections, particularly in central locations where values have fallen by as much as 10%-15% from their peak three years ago, the number of new buyers registering has shot up 44% year-on-year and the number of viewings is up 24%.”
Guy Gittins, Managing Director, commented: “Activity over the last six months has shown a marked improvement compared to the same period last year, giving us an optimistic view for the rest of the year. The surge in buyer registrations at the start of the year and an uplift in viewings has converted into a considerable increase in agreed sales. However, with many of these deals not yet completed due to longer conveyancing periods, the results of the early-year boost will be felt over the autumn period. We have also seen a modest 1% rise in the number of properties that we have brought to the market for sale.”
