PropertyOct 23 2018

Central London property market slumps

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Central London property market slumps

Property transactions in central London have fallen to a record low after dropping to below levels seen during the global financial crisis

According to the residential index from real estate investment firm London Central Portfolio annual transactions fell 16.8 percentage points in prime central London in September, to 3,606.

The figures equate to fewer than 70 sales a week, the lowest on record, and represent a 45 per cent drop on transactions seen in 2014.

Naomi Heaton, chief executive at London Central Portfolio, said the decline in transactions was exacerbated by the Brexit situation and may not be reversed until there is an agreed plan in place.

She said: "International buyers, already affected by successive tax increases and now exposed to negative coverage of the current political situation, are holding back.

"Nevertheless, the high value sector is seeing a better performance now. The weakness of sterling and the high absolute levels of discounts available are encouraging homeowners, in particular, to enter the market."

On a national level, the decline in transactions was widespread but not as sharp as that seen in the capital with England and Wales witnessing a drop of 3.2 percentage points to 779,638 transactions.

Ms Heaton said there was little cause for optimism for all the sectors the index reports on.

She said: "Growth has been stifled by the government’s failure to give a clearer picture of what a post-Brexit landscape will entail for homeowners and investors alike.

"Those who have been sitting tight will have seen very little to encourage them to take the plunge in the current climate, particularly as the growth in the value of their own property has been nominal."

rachel.addison@ft.com