New analysis from Strutt & Parker reveals that the residential market in prime central London (PCL) is starting to rebound with an unseasonably busy November, signalling a closing window of opportunity for buyers.
This momentum arrives following a pause in sentiment in the year since the mini budget and has been encouraged by the recent stabilisation of the Bank of England’s base rate.
The national estate agency’s PCL offices have recorded a significant month-on-month jump in new applicants, volume of offers received, properties going under offer, and new instructions coming to the market.
Comparing October to November 2023, Strutt & Parker’s analysis reveals that the number of offers accepted in November is up 84%, while there has been a 14% increase in the number of new applicants registering in November. New instructions coming to market has risen by 9% compared to October.
James Gow, head of London sales at Strutt & Parker commented: 'This year, the macro-outlook has weighed on sentiment in the market, and while prices have remained broadly stable, transactions have been more complex to achieve.
'Not because buyers lack capital, but because they were taking a ‘wait-and-see’ approach. The recent pause in interest rate hikes has had a tangible impact on confidence, and our November analysis reveals that for many, the wait is now over.
'The momentum in the market is beginning to shift, with viewing and offer levels trending upwards, and this will only further support where values currently sit. I expect it will be these buyers who look back and realise the opportunity this window offered.'
Further supporting the evidence of a rebound is Strutt & Parker’s year-on-year analysis for November 2023, which points to a renewed market compared to that of 12-months ago, in the wake of the mini budget.
The number of offers received this November was up 44.2%, the research finds, while offers accepted were up 25% on the same month last year, and new instructions coming to the market were up 61% on November 2022.
Gow continued: 'The most committed buyers in the market today recognise that Prime Central London still offers comparatively good value. And they are right too, with prices still almost 7% beneath their 2014 peak.
'These buyers are also astute to the price they need to pay to secure the best homes in the best addresses. With this momentum, I expect we could see modest price growth in the coming year, with value growth of up to 10% in in the next five years.'
