Transactions in prime central London have dropped nine per cent in the year to the end of August according to Knight Frank - and it says the fall “highlights how uncertainty surrounding the final stages of Brexit talks are having an impact on the market.”
The agency says that in a similar fashion to sales volumes, pricing has weakened in recent months as uncertainty around the UK’s exit from the EU continues.
“This trend has been exacerbated by a growth in supply as more landlords attempt to sell their property following tax changes” according to Knight Frank’s London research chief, Tom Bill.
However, the agency says that despite the sales and prices issues, underlying demand has continued to increase - the number of new prospective buyers in prime central and prime outer London grew 31 per cent between January 2016 and August this year, the agency notes.
“Meanwhile, in a sign that pent- up demand is forming, the total number of prospective buyers was 11 per cent higher in August in prime central London than the same month last year. The equivalent rise was six per cent in prime outer London” says Bill.
He adds that the Brexit uncertainties may be “a short-term trend that may reverse once the outcome is determined.”