Autumn breeze - Prime London market showing positive recovery signs

The property market in prime central London showed some impressive signs of recovery during the summer months, according to Knight Frank.

The agency reports that its number of viewings over the summer hit a five-year high, with 16% more viewings over July and August than the same period last year.

Knight Frank's head of London research, Tom Bill, says the surge in viewings is down to buyers responding to price adjustments, while overseas investors continue to benefit from the weakness of the pound.

Meanwhile, the ratio of new prospective buyers to new property listings climbed to 11.4 in August across prime central and prime outer London. This is the highest level experienced in over a decade.

"While many buyers are primed to transact, the political uncertainty has caused some potential vendors to hesitate," says Bill.

However, in the six months to August, Knight Frank carried out 13% more transactions than the same period in 2018 - the highest recorded over the same period since 2014.

Bill adds that record-low interest rates have helped to 'underpin market liquidity' and subsequently a growing number of buyers are fixing for longer-periods of time.

In the lettings market, the agency has also experienced positive market movements. Its number of tenancies agreed in the year to August increased by 34% - the highest growth figure recorded in over five years.

The agency says rental demand has been 'particularly strong' in lower price brackets, reflected by the fact that average rental values between £250 and £500 per week increased by 3% in the year to September.