Transaction levels topple by 28%, says London agent

A top London agent has broken ranks by admitting that transactions are down with falling demand.

Ivor Dickinson, managing director of Douglas & Gordon, said that as a result, stock levels are far higher than last year. Until now, London agents have been saying that the London market has been bucking wider trends.

But Dickinson said: “In London, we are not seeing a deluge of new property coming to the residential sales market, but the cumulative total is growing month on month because of a slowdown in actual sales.

“In July we took on almost exactly the same number of new properties as this time last year, but the total number of properties available is 68% higher. Douglas & Gordon did agree 28% fewer sales than in June; however, this is perfectly normal for this time of year.”

In contrast, Dickinson said, the rental market is booming but with a huge lack of supply.

“This July, we had an extraordinary 80% fewer properties available to let compared with this time last year, and 37% more prospective tenants.

“This is creating a very competitive marketplace. As a result, the majority of rental renewals in July increased by an average of almost 5.5%.

“This big change in the lettings market will tempt back the buy-to-let investors, creating more demand in the sales market.”