Property sales in London continued to fall, with a 7.1 per cent drop in the first three months of 2019.
A report by London Central Portfolio (LCP), said: “sales go on falling and falling”. They highlighted ‘Brexit uncertainty’ for the drop in the first three months this year, when the originally slated deadline of 29 March was looming.
However, the original Brexit deadline actually provided an initial boost to the market, with high-demand property in central London being purchased by wealthy and international buyers.
But prices in the sector still fell by 3.7 per cent in the 3 months to March 2019, while annual transactions fell by 15.7 per cent, showing a continuing trend.
Property transactions in Greater London have also been dropping in the long-term, with a 3.4 per cent fall over the last 12 months.
Naomi Heaton, Chief Executive of LCP, said: “Buyers’ faith in the market has waned and sellers are beginning to question whether now is the best time to make a move.
“Average prices have fallen every month since last September. In previous market cycles, London has often been an early indicator of what was to come for the rest of the UK. This may well presage more bad news to come for the domestic market.”
The average price of a new build property in London is now £691,452 – which is an increase of 15.2% on the previous year. The new build property market is also slowing, with the rate of transactions falling at a quicker rate than non-new builds, at 18 per cent annually.
Ian West, a partner at Carter Lemon Camerons, said: “Whilst values are falling in the south-east those clients who do have a buyer are finding that their transactions progress more slowly.
“There are a few signs of activity with some buyers who with have cash or a sufficient deposit able to purchase at a competitive price in view of the downturn in the market.”