At last there is a reason to be optimistic regarding the market in Prime Central London, Greater London generally and also the South East. The General Election result in December is largely being seen as favourable to the property Market and at long last Brexit is done and dusted albeit trade negotiations with the EU have only just commenced.
Are we eventually going to see the supposed pent-up demand released during Q1 and Q2?
Figures just released indicate that transaction volumes in the fourth quarter of 2019 in Prime Central London rose by 34% compared with the same period a year earlier. More pronounced were changes at the top end where the number of houses sold at £5 million or above in the fourth quarter of last year increased by 24% across Prime Central London.
So what does this mean going forward? Miles Shipside, Rightmove Director and Housing Market Analyst believes that the market is still price sensitive with possible stretched buyer affordability so sellers should be careful not to get carried away with their pricing and miss out on this window of increased activity.
One factor behind the upwards price pressure has been the shortage of property coming onto the market in many high end areas of the South East including Prime Central London with some would be sellers postponing their moves until they judge the outlook to be more certain. While there may well be more twists and turns to come in the Brexit saga, there is now an opportunity for sellers to market their property anticipating a Spring upsurge unaffected by Brexit. Encouragingly property prices in London rose by 2.1% last month being the largest ever January rise and at the same time there was a 19% leap in the number of agreed sales.
There is however still a note of caution to be sounded as inevitably after so many years of uncertainty there was bound to be a revival once the General Election was decided and Brexit concluded. What we do not know as yet is how much that revival will be affected by any setbacks in our ongoing trade negotiations with the EU and again this is a scenario that changes almost on a daily basis.