Coutts has identified areas of London where house prices are still below peak.
Although the wealth manager and private bank says there is substantial evidence that prices and demand are both rising, buoyed by the decisive General Election result and by the UK finally leaving the EU, its breakdown of London sub-markets show a hugely mixed picture.
For example, in Bayswater & Maida Vale sales volumes fell 7.1 per cent annually and are down 30.7 per cent compared to recent peak levels.
In Fulham & Earl’s Court, prime property prices fell 5.9 per cent over the last year and are now 17.6 per cent below the peak.
Across Marylebone, Fitzrovia & Soho - a sub-market which saw the highest drop in prices covered by the bank - there was a 6.9 per cent fall in prices over the last year.
New instructions in Hampstead & Highgate have dropped 32 per cent in the past year and the number of prime sales shrank is down 2.1 per cent annually.
In Hammersmith & Chiswick over 55 per cent of prime properties are selling at a discount - typically 8.8 per cent off asking price.
The list goes on: at St John’s Wood, Regent’s Park & Primrose Hill the number of prime sales in this area reduced 12.5 per cent compared to the previous year, while in Mayfair & St James’s - despite a two per cent rise in prices in 2019 - they remain 10.8 per cent below the asking price on average.
The picture is so mixed that there are a small number of spectacularly high figures in the opposite direction - for example in Chelsea, prime sales increased 51.6 per cent annually while new instructions saw a 7.8 per cent increase compared to the previous year.
And in King’s Cross & Islington prices are close to record levels, claims the bank - although here they remain 1.3 per cent below peak with discounts averaging 6.1 per cent off asking price.
Katherine O’Shea, from the Coutts Real Estate Investment Service, says competition among buyers is likely to increase this year, putting further pressure on prices.
“Historically, the number of properties put up for sale has usually improved in the first quarter of the year, so we would expect more homes to come on to the market over the coming months. But the number of buyers is also likely to rise as the political uncertainty of the last few years continues to unwind. This increased demand could push prices higher” she says.
“The numbers for the last quarter of 2019 could be showing us a distinct change of mood in the luxury property market. It’s been subdued and filled with uncertainty for some time, but we’re now seeing the potential for brighter times ahead.”