_The London Residential Review - Summer 2019

Sales

There is clear evidence that a number of buyers have manoeuvred themselves into a position that enables them to act once the Brexit current impasse has been broken, something that could happen at short notice.

The number of new prospective buyers registering in prime central and prime outer London increased by 11.3% in the year to March 2019 compared to the previous 12-month period. Meanwhile, the number of offers made rose by 14.3% over the same period.

So not only are there more new buyers compared to a year ago, but those buyers are each making more offers, increasing pressure on the demand side.

While demand has grown, the supply of new properties has not kept pace. Vendors have acted in a more cautious manner against the backdrop of Brexit and the number of new listings declined 12.5% in the year to March across prime London markets.

As a result of these diverging trends, the ratio of new buyers to new listings in prime central and prime outer London rose to 9.1 in March, the highest figure Knight Frank has ever recorded.

Lettings

Tax changes for landlords have prompted some to leave the rental sector. The latest proposed change could lead to the end of so-called ‘Section 21’ notices, which has created uncertainty over how some tenancies will be legally brought to an end. Meanwhile, the number of buy-to-let mortgages issued in the UK is about 40% lower than it was before an additional 3% stamp duty surcharge was introduced in April 2016.

However, while the number of new lettings listings in PCL declined 6.3% in the year to March, it was the most modest decline in over 18 months.

This is due to a growing number of landlords who have re-listed their properties on the lettings market after attempting a sale.

Political uncertainty has curbed activity and pricing in the sales market, which means some vendors have not been able to achieve their asking price.