PCL market rises after ‘unseasonably busy’ November

The prime central London market is set for a rebound, analysis claims.

Research by Strutt & Parker reveals the PCL market was “unseasonably busy,” with its prime London offices recording month-on-month jumps in new applicants, volume of offers received, properties going under offer, and new instructions.

The number of offers accepted in November was up 84% since October, while there was a 14% increase in the number of new applicants and a 9% monthly rise in new instructions.

On a yearly basis, the number of offers received in November was up 44.2%, while offers were up 25% and the number of instructions rose 61%.

James Gow, head of London sales at Strutt & Parker, said: “This year, the macro-outlook has weighed on sentiment in the market, and while prices have remained broadly stable, transactions have been more complex to achieve. Not because buyers lack capital, but because they were taking a ‘wait-and-see’ approach. 

“The recent pause in interest rate hikes has had a tangible impact on confidence, and our November analysis reveals that for many, the wait is now over. The momentum in the market is beginning to shift, with viewing and offer levels trending upwards, and this will only further support where values currently sit. I expect it will be these buyers who look back and realise the opportunity this window offered.

“The most committed buyers in the market today recognise that PCL still offers comparatively good value. And they are right too, with prices still almost 7% beneath their 2014 peak. 

“These buyers are also astute to the price they need to pay to secure the best homes in the best addresses. With this momentum, I expect we could see modest price growth in the coming year, with value growth of up to 10% in in the next five years.”