_Prime central London sales report: May 2017

On an annual basis prices fell 6.6%. Despite this decline in prices over the past 12 months, there is a noticeable trend towards slower price falls. This shift is evidenced by the fact that the three month rate of price change stood at -0.2% in May, which compares to a figure of -4.1% in December last year.

Knight Frank activity data provides evidence of strengthening demand, reflected by a 14.7% year-on-year increase in the number of new buyers registering to purchase across prime central London in the first five months of 2017. The number of viewings increased by 19% over the same period, while the number of exchanges rose by 13%.

LonRes data provides additional confirmation of an improvement of activity in recent months.

Their data points to a total of 323 transactions in prime central London in April 2107. Excluding the one-off spike in March 2016, ahead of the introduction of the additional rate of stamp duty, this was the highest figure since June 2015, the month following the last general election.

While activity has risen, sales are taking longer to complete. In the six months to March 2017, the average time from when a property was listed for sale to the date of exchange rose by a third compared to the same period 12 months ago, an analysis of Knight Frank data shows.

Looking ahead, despite the uncertainty engendered by the election, there is a real potential for further growth in activity. While exchanges were higher by 13% between January and May 2017 compared to 2016, there was a 36% rise in the number of properties under offer.

PCL sales index in May 2017: 5,962.4