Sales highlights
- Having fallen to -20.6% below peak levels in Q1 this year, prices have now rebounded to -12.8% below their Q3 2007 peak.
- There has been an uplift in domestic demand in many areas, with the improving economic outlook in the capital serving to sharply improve confidence in job security.
James Hyman, Partner for Residential Sales, comments:
"The Central London sales market has performed well this year, with significant price uplift in the past three months driven by limited supply. However, this may well reverse in the New Year as people who have held off selling over the past year or so are encouraged to come to market by rising prices, which could in turn bring about a second dip in property values."
Lettings highlights
- Rental values fell 0.3% over the fourth quarter, following similar marginal falls in the previous two quarters. Annually, rents have fallen 7.5% and are down 14.8% from their peak values.
- The strongest rental market this year has been South West of the river, which has proved relatively resilient, with rents falling just -1.3% over the year.
- The last quarter of the year has seen levels of supply and demand in the rental market drop off by roughly equal amounts, with a consequential knock-on effect on the level of deals agreed over the period.
- Tenants continue to demand high quality rental accommodation, with high-spec fully furnished properties generally attracting multiple offers and achieving some rental growth.
Lynn Hilton, Partner for Residential Lettings at Cluttons, says:
“The past few months have been quiet for the London lettings market, as landlords and tenants alike have restrained from committing to any activity before the Christmas period.
"However, we have seen an increase in valuations this month, and would expect many of these properties to come onto the market in the New Year, paving the way for a recovery in 2010.”
