Prime property values in London fall despite activity rise
Reports from leading estate agents show asking prices for properties for sale in London dipped in the second quarter of 2016. Rental prices have also fallen although the volume of deals since June's referendum has risen.


More news about the UK economy and the property market:
- Home ownership falls amid affordability crisis
- House prices at new high but facing referendum tremors
- EU referendum result cools house prices
In its report on prime sales, Knight Frank said: "Changes to the market over the past two years have meant that the Brexit vote has merely been a trigger for some to make overdue reductions to their asking price. It is too soon to say what impact Brexit will have on pricing but, in many cases, reductions reflect what would have been an appropriate price before the referendum."The report showed that annual price growth fell to minus 1.5 per cent in July even though the number of viewings in June was 17 per cent higher than the same month in 2015 with demand relatively strong in top-end areas such as Belgravia and Knightsbridge. On prime rents, Knight Frank said that while volumes of transactions had increased since the referendum, values had declined.Tim Hyatt, Head of Lettings at Knight Frank, said: “The current lettings market in prime central London is encouragingly stable. We saw a spike in new instructions in the aftermath of the referendum vote, although the number of new applicants registering is slightly down creating an imbalance of supply and demand. From a transaction perspective, the level of new deals has remained strong. In particular, the number of corporate enquiries was encouragingly positive as it was dramatically up on last year, highlighting that confidence in London as a capital city of choice remains strong. Due to the imbalance of supply and demand, landlords need to be realistic when it comes to pricing in an increasingly competitive market. This includes considering price reductions, however significant, in order to reflect value in the current climate.”
©2021 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.