Too early to talk of prime London sales recovery, warns Knight Frank

It is too early to talk about a recovery in the long-term decline of the prime central London sales market despite some signs of increased buyer activity.

That's the verdict of high-end agency Knight Frank, which says sales volumes between £2m and £5m - common prices paid in prime London - were higher in October than in any month this year with the exception of March. 

However, the agency's researcher Tom Bill says: "It would be premature to suggest a recovery is underway and buyers remain exceptionally price-sensitive", adding that sales of properties priced £2m to £5m so far this year are a third lower than in the  same period of 2014.

"Future negotiations between the UK and the EU also have the potential to act as a brake on demand" he warns.

Prices of £2m to £5m properties have fallen by 2.4 per cent, while those priced between £1m and £2m are down 1.4 per cent. 

Overall, says Knight Frank, prime London prices are now the same as in the second quarter of 2014.


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