Boris Bounce subsides as agent admits London sales slump

There are fears that the so-called Boris Bounce which saw a surge in activity after the General Election may be hitting reverse.

Knight Frank, often seen as one of the more eternally-optimistic agencies, says that the immediate post-election period saw the highest monthly number of exchanges in Prime Central London in December since March 2016. 

However, the agency has now revealed that this was followed by a decline in January, underlining how uncertainty surrounding future tax changes and Brexit negotiations may continue to curb transaction volumes. 

In a market snapshot that relates to the period before concerns about Coronavirus reached today’s pitch, Knight Frank says: “While the number of new prospective buyers rose 37 per cent in PCL in the year to January compared to the previous 12 months, the number of new sales listings fell by a quarter. This imbalance will continue to put upwards pressure on prices.”

The agency also gave an insight into its High Net Worth clientele by saying that the percentage of purchasers from the financial services sector buying homes in PCL above £2m rose in 2019. 

Workers from banking, insurance and associated sectors accounted for 34 per cent of sales, the highest figure since 2013.

In terms of Prime Central London lettings, Knight Frank says demand continues to rise in relation to supply, which is putting upwards pressure on rental values. 

“There was an average of 8.4 viewings per new listing in 2019, which was the highest ratio for more than 10 years. Meanwhile, the ratio of new prospective tenants to new listings was 6.1 last year, compared to an average of 3.7 since 2007” notes the agency.