LonRes: Prime London market slowed in 2023 but remains up over the long-term

Prime London prices fell 6% annually over 2023 but remain higher over the long term, LonRes claims.

Analysis by the data company said 2023 may have been characterised by rising interest rates, high inflation, and an uncertain economy yet the long-term trend for prime London’s housing market is one of stability. 

Its research found that achieved sold prices across prime London finished the year 6.2% down but they were 0.9% above five years ago and 1.7% higher than 10 years ago.

Transactions in December were also down 16.6% annually, pushing overall sales for the year down 18.5%.

But transactions remain 2.1% higher compared to the pre-pandemic annual average, LonRes added.

Traditionally a quiet month, the number of properties going under offer in December was lower than a year ago by 16.9%.  Over the full year, this measure was 11.5% down on 2022.

New instructions in December also decreased by 8.6% annually but 2023 finished only 0.5% down in total.  Overall, the combination of supply and demand activity over the course of the year means that there was 7.2% more stock on the market across prime London on 31 December than a year earlier, according to the research.

LonRes said the £5m+ market continued to be the standout market of 2023 with 47% more transactions compared to the 2017-19 average.  However, £5m+ sales in December fell by 9.5% compared to a year earlier but new instructions were up 8.3% on the same basis. 

Nick Gregori, head of research at, LonRes said: “While news about the wider economy has been mixed the relatively improved outlook for interest rates does appear to have sparked buyer interest at the start of the New Year.  Agents have been reporting increasing numbers of viewings which we would expect to feed into transactions over the coming months.

 “Conflict escalating in the Middle East could be seen as a negative impact, but similarly it reinforces the appeal of London as a ‘safe haven’ for investors.”

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A “more dynamic” property market is set to emerge this year, Landmark Information Group claims.

It comes as quarter four statistics from the data company suggested listings volumes were on par with the same pre-pandemic period of 2019.
Sold subject to contract (SSTC) volumes were down 19% annually compared to 2019 but up 8% on a quarterly basis.

Valuation levels were also up 13% on December 2022.

Simon Brown, chief executive of Landmark Information Group, said: “Following the persistent economic turbulence of 2023, and the flattening effect this had on the property market into Q3, our latest data shows listings remained strong, as through much of 2023, signalling the continued willingness of people to move home. What has now changed is the external economic landscape.

"With lenders starting to compete to offer movers the best deals, we could see transactions progressing and market conditions returning to more normal levels as the pipeline filters through into the second half of 2024.”