Big slide in prime London listings thanks to Brexit, admits agency

An estate agency has produced figures showing a 12.5 per cent slump in the number of homes listed to sell in prime areas of London this spring compared to last.

But the agency - Knight Frank - insists that the market is ready to bounce back once Brexit is resolved.

The firm says there is clear evidence that a number of buyers have manoeuvred themselves into a position that enables them to act once the current political impasse ends. 

It says the number of new prospective buyers registering in prime central and prime outer London increased by 11.3 per cent in the year to the end of March compared to the previous 12-month period. 

Meanwhile, the number of offers made rose by 14.3 per cent over the same period. 

However, Knight Frank admits the number of new listings declined 12.5 per cent in the year to March across prime London markets.

“As a result of these diverging trends, the ratio of new buyers to new listings in prime central and prime outer London rose to 9.1 in March, the highest figure Knight Frank has ever recorded” says the agency’s London research chief, Tom Bill.

“Any political resolution [to Brexit] would lead to an initial period when demand outstrips supply, which may also provide upwards pressure on pricing. Following this initial period, new property listings are likely to rise, which would lead to greater equilibrium between supply and demand” he continues.

“Any impact on pricing is therefore likely to be short-lived. In the longer-term, a more prolonged period of political or economic stability should see house price inflation return in prime London markets” he hopes.