Prime central London is witnessing a major increase in demand from home buyers as per several reports. However, in a strange development, the number of real estate transactions are coming down rapidly in this market although demand continues to go up across various segments. Latest reports have clearly indicated how there is growing demand for property in London and in the prime central zone although transactions are falling here.
Sales volumes of real estate in London can be a lot higher if there was no anxiety relating to the final result of Brexit as per market and industry experts. For 2018 till the month of August, transactions declined by approximately 9% for prime central London as compared to the 12 months previously. However, there was a contrasting increase of around 7% in the year till March 2018. This was a clear indication that market sentiments and transactions had both recovered post the EU referendum in 2016.
Political uncertainty is a major reason behind the overwhelming impact on property prices as per experts. Average prices for the prime central London region came down by approximately 2.9% till September 2018 as per reports. Additionally, supply levels increased earlier with landlords listing /selling more properties due to the effect of tax policy changes throughout the entire sector.
However, 12.5% new prospective buyers were seen in Q3 2018 as compared to the same duration last year. The total number of prospective buyers also increased by roughly 1/5th although the number of transactions have come down. There is a kind of pent-up demand in the realty market in London which is indicated by lowered supply and growing demand. This may lead to higher real estate transactions and sales from the end of the year onwards which is when there could be some resolution on the Brexit verdict.
