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The PCL market continued to show resilience, experiencing 1.2% annual price growth and the lowest annual decline in transaction volumes.
Price growth in PCL, Greater London & England and Wales (3-mth rolling)
Liam Monaghan, Managing Director of LCP Private Office, comments on Prime Central London
Whilst price growth remained static in July across all markets, the annual change paints a more positive picture. The Prime Central London (PCL) market continued to show a degree of resilience against a challenging market and economic backdrop, experiencing 1.2% price growth year-on-year, with houses continuing to outperform flats. PCL flats now stand on average at £1,156,112, whilst the average house value has reached £4,064,704, up 1.7% on the previous year.
Whilst we have seen the usual market slowdown over the summer holiday months, transaction volumes have been further suppressed. PCL saw an annual decline of -30.2% (averaging just 55 a week), outperforming Greater London (-33.2%) and England & Wales (-32.4%). This is likely to be due to the ongoing uncertainty over the consequences of the General Election, the continued wait for interest rate reductions and a lack of new property listings to the market.
The Bank of England’s long anticipated base rate cut to 5% on August 1st provided the clarity that many homebuyers had been waiting for, evidenced by the 19% rise in buyer enquiries in August compared to last year, as reported by Rightmove last week, up from 11% in July. LCP has also had its busiest month of 2024 in terms of new buyer enquiries in both BTL (Buy-to-Let) and Homeowner markets.
With the base rate cut and the uncertainty of the pre-election run behind us, we expect to see buyer demand increase over the autumn, when overseas buyers typically return to London at the start of the academic year. The financial markets are predicting a further cut of 0.25% in November, which should similarly help boost activity as mortgage rates continue to ease. Indeed, there are signs that rates are already coming down faster than expected, with the first sub-4% mortgage rate now available.
We hope this sentiment will be echoed in the sales market, as long-awaiting sellers look to list their properties in September to take advantage of increases in buyer interest, ahead of the government’s first Autumn Statement.
Prime Central London Performance By ‘Village’ and by property type
Bayswater was the best performing village in terms of combined price growth for both flats and houses, with 3.9% and 3.6% annual growth respectively. An area with beautiful historic architecture, Bayswater has benefited from some much-needed regeneration in recent years, and with values still below their 2015 peak, it continues to offer a good opportunity for investors and home buyers alike. Average rents here stand at £3,346 pcm, up 5.1% on the previous year.
Notting Hill & Holland Park similarly experienced strong annual price growth for both flats (3.5%) and houses (3.1%). Values in this popular village are now the closest to reaching their 2015 peak for flats (-2.4%) and it is the only area where house prices have surpassed their peak (+2.2%), following consistent demand from both domestic and international homeowners and investors alike.
Values in Mayfair saw negative annual growth across both flats (-2.4%) and houses (-2.3%), with prices now considerably below their 2015 peak, particularly in the flats market (-12.7%). Marylebone and Fitzrovia similarly saw negative annual growth for flats of -2.5% and -2.1% respectively and with values in both villages for flats and houses showing the greatest discounts to their 2015 peak, there is an opportunity to acquire property in these prime locations at very compelling prices.
LCP Private Office is more than just a buying agent. We help clients acquire, renovate, design, let or manage their property in Prime Central London. Whatever your requirements, we are here to help. To arrange a call with one of our search experts, please click here.