Further 'significant' price falls in prime London unlikely due to low supply

Properties in north and east London have been the strongest performing prime regions in the capital over the past five years, according to research from Savills.

A price fall of 0.3% was recorded across prime London in Q1 2019, leaving prices 2.5% lower than a year ago.

The real estate service provider claimed that this was encouraging given the ongoing political turmoil.

Other key findings from Savills’ research:

  • applicants and viewings increased in the first quarter of this year
  • price expectations of buyers and sellers have narrowed, keeping the market moving, while location and condition continue to be key selling points
  • affordable properties in the north and east London markets have been the strongest performing
  • north and east London properties worth less than £750,000 have seen prices fall by an average of 6.8% since June 2016, whereas properties worth over £1m have seen values fall by 14.8%

Savills has forecasted a “relatively subdued” prime London market during ongoing Brexit negotiations, with further significant price falls unlikely due to the low supply of available housing stock.

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