Fall-throughs up and under offers down as prime market pauses

Fall-throughs are up and the number of properties under-offer in prime London areas has fallen below the pre-pandemic average for the first time since June 2020, new figures show.

Monthly analysis for October by property data company LonRes shows the level of properties under offer, an indicator of sales activity fell, has fallen sharply.

The number of properties under offer compared with the 2017-2019 average was down 9.2% in October and fell 20.3% compared with the same time last year, albeit just after the end of the Stamp Duty holiday.

Under offers have fallen most in the more mortgage dependent prime fringe areas, LonRes said, with houses down 37% and flats down 18%.

Under offers for flats are down across all sub-markets but houses in prime central London saw a 38% increase.

The research, conducted by property analyst Neal Hudson of BuiltPlace, also found that fall-throughs in prime London markets were 80% higher than their pre-pandemic average last month.

Sales remained 11.6% higher than last year and 12.1% higher than the pre-pandemic average, according to the research.

New instructions were up 2.4% annually and 5.8% above pre-pandemic levels.

Anthony Payne, managing director of LonRes, said: “The political and economic turmoil has eased in recent weeks but the prospects for the housing market are still a cause for concern, with most commentators now expecting house prices to fall in the mainstream market over the course of 2023.  

“Mortgage rates have been rising steadily over the year, stretching people’s ability to buy. While the prime London market is less exposed to higher mortgage rates and any price falls here are likely to be less severe, we are seeing caution among prime London buyers and sellers. 

“Many are sitting it out waiting to see what happens next.  That caution is most obvious in the fall in number of properties going under offer.”