A week is famously a long time in politics, but of more interest to kitchen and bathroom retailers is how quickly the property market responds to economic trends. And it would seem that a lot can happen to property prices in a month.
In July, the Halifax reported that annual house price growth was unchanged. However, by August it is looking like the wheels have fallen off price increases in London property prices at the mid-to-top end of the market at least.
New analysis of LOREMA and Land Registry data by London Central Portfolio (LCP) shows a deepening new build crisis in the 11 boroughs that make up the Inner London property area Despite an ever increasing number of new developments statistics show that the attraction of these new properties, where prices now average £914,532, is waning.
According to LCP’s analysis of the Government’s Land Registry data, only 1,491 new units have been sold so far this year, a substantial 43% decrease on this time in 2015. This compares with older properties in Inner London where transactions have remained static, 13,194 in 2016 compared with 13,190 over the same period last year.
According to Emma Haslett formally of Property Week and currently the digital editor of City AM, the price of new build properties now averaging at just under £1m is what is putting potential buyers off.
And there is more bad news for developers; square foot prices have also fallen for new properties. Across the Battersea-Nine Elms stretch (a former hotspot for investment properties) prices are down 8% on their 2014 high.
LCP is a specialist residential property advisor focusing on Prime Central London. It has an extensive private client practice and has successfully brought multiple funds to market, capitalising on this sector.