Knight Frank reveals sales and lettings figures for the capital
Prime sales in London rose 14% across the capital in the three months to July and 3% in prime central London (PCL), according to the latest Knight Frank data.
However, exchanges are 7% lower in both London and PCL over the last three months and, compared to the five-year average, are down 6% in London and 15% in PCL. However, Knight Frank warns that the comparison is distorted by a series of stamp duty changes during and after the pandemic as well as the sharp re-pricing of mortgage rates that began in 2022.
Average prices in PCL have fallen by 23% since their last peak in mid-2015 and 3.3% in the year to July — the 39th consecutive month of annual declines. Prices rose modestly over the two years to April 2023, but that followed a 59-month period of declines that ran from June 2016. Prices have been steadier in prime outer London (POL).
Rents continue to rise
Meanwhile in the lettings market, where Rightmove data shows the number of new rental listings in prime central and prime outer London was 14% below the five-year average in the first six months of this year, average rents have continued to rise – up 3.2% in POL in the year to July, according to Knight Frank’s data. That’s up 1.2% over the previous three months.
The last fall in rents was five years ago during the pandemic, with rents in POL now 36% higher than they were before Covid.
Meanwhile in PCL, average rents increased by 1.1% in the year to July, increasing on an annual basis for five years and currently 37% higher than before the pandemic.
Mel Constantinou, head of lettings in south-west London and the Home Counties at Knight Frank, said landlords were raising prices in response to changes within the Renters’ Rights Act.
“Without competitive bidding, some landlords are taking a more confident approach to pricing,” she said. “Whether tenants are prepared to meet higher asking rents depends on how tight supply is in the local area. As the market adjusts to the new rules, setting the right asking rent from the outset will become increasingly important.”
