Offers and instructions show signs of promise in Prime London

New instructions almost doubled across prime areas of London in September compared to the same period a year ago, while the number of properties on sale has risen for three months on the trot says property platform LonRes.

However, transaction volumes - as measured by actual exchanges - remain 18 per cent lower than in September 2019 while average discounts are still relatively high at 7.2 per cent.

“With the very real threat of further government restrictions this autumn, people’s homes have become more of a haven than ever. Our homes are having to work harder doubling up as places to live, work and play (in a law-abiding manner)” explains Marcus Dixon, head of research at LonRes.

“Indeed, despite ongoing economic uncertainty buyers continue to push ahead with their search for a home capable of adapting to their changing needs. This is demonstrated by the increase in properties going under offer – up for the third consecutive month - and the number of homes coming to market which in August and September almost doubled on 2019 levels” he continues.

“Sales are still taking longer to progress, meaning that exchanges continue to lag, with only the top end of the market (£5m+) recording more exchanges in September this year than last.”

Despite far fewer new instructions in the spring lockdown period between March and May, overall in the first nine months of 2020 there were 19 per cent more new properties reaching the market than in the same period a year ago.

The platform says both August and September were “particularly busy” in prime London with the number of new instructions almost doubling compared with the same period a year ago - up 98 per cent in August and 99 per cent in September.

“With domestic owner-occupiers bringing their homes to market we are less concerned that this increase in new instructions will flood the market with stock. However, if these sellers don’t go on to buy another home in prime London (either choosing to buy outside the capital, or rent instead) we could see stock levels rise with the potential to put downward pressure on prices in certain markets” warns LonRes.

Yesterday a more gloomy forecast for the capital's housing market was released by the website Home.