UK Property - Prime London Sales Index
The prime London sales indices are based on repeat valuations of existing stock and do not include new-build property, although units from completed developments are included over time.
Figure 1 — The number of new prospective buyers registering with Knight Frank in London rose to its highest weekly total in more than 15 years in the second week of January as buyers looked to capitalise on the relative certainty produced by December’s general election result. The figure was 92% higher than the equivalent week last year and 95% up on 2018.
Figure 2 — Although demand has surged in the weeks following the election result, this trend is unlikely to produce any material impact on prices in the near-term. Uncertainty remains in relation to a possible stamp duty hike for overseas buyers as well as continuing Brexit-related ambiguity. Average prices declined 2.1% in PCL in the year to January.
Figure 3 — In the ten working days following the election, Knight Frank carried out more sales in PCL than any equivalent ten-day period since December 2016. Overall, the number of exchanges in prime London markets was 14% higher last year than in 2018 and the highest annual total since 2014.
Figure 4 — Some 45% of chief financial officers said the financial prospects for their company had improved compared to three months ago, according to a survey by accountant Deloitte. This was the highest proportion in more than a decade and echoes the renewed sense of optimism that is driving activity levels, if not prices, in London’s prime residential markets. The Purchasing Managers Index showed business activity at a 16-month high, in a further boost for the UK economy.
Courtesy: Knight Frank
CONTACT FOR FURTHER INFORMATION:
Tom Bill - Head of London Residential Research
+44 20 7861 1492
Tim Hyatt - Head of London Residential
+44 20 7861 5044
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