The number of new prospective buyers between £750,000 and £2 million was 21% above the five-year in the first three months of year, according to Knight Frank data
The number of sales instructions in London was 17% above the five-year average in the first quarter of 2024, reveals leading agency Knight Frank.
It says buyers are currently playing a bigger role in driving activity. While this has benefitted lower-value markets, there has been more hesitancy in discretionary, higher-value markets.
The number of new prospective buyers between £750,000 and £2 million was 21% above the five-year in the first three months of year, according to Knight Frank data. Above £5 million the rise was just 3%. In the meantime, the total number of offers made between £750,000 and £2 million was up 6%, while above £5 million there was a 6% drop.
The number of new prospective buyers, offers made and exchanges have all been notably higher in the south-west of the capital over the last six months. Indeed, the two London areas with the strongest price growth in the year to March were Wandsworth (2.6%) and Dulwich (2.3%).
Average prices in prime central London (PCL) dropped 2.4% in the year to March, the same figure as logged in February. Meanwhile, prices were 1.5% lower in prime outer London (POL) after increasing by 0.1% on the earlier month.
Tom Bill, head of UK residential research at Knight Frank, says: The best way to describe the recent performance of the UK property market is ‘ten weeks of recovery followed by ten weeks of drift’. It is a pattern shaped by interest rate expectations, with mortgage costs dropping and rising as signals around inflation have been frustratingly mixed.
He added: The result is a lack of urgency among buyers, a fact compounded by rising supply. The number of sales instructions in London was 17% above the five-year average in Q1 2024.
He said: This mood of circumspection means needs-based buyers are currently playing a bigger role in driving activity. While this has benefitted lower-value markets, where a higher proportion of domestic buyers move for education or employment, there has been more hesitancy in discretionary, higher-value markets. Uncertainty around recent rule changes for individuals with non-dom tax status may have aggravated the situation.
