Agents Optimism In London Residential Softens

The proportion of central London agents expecting price falls by the end of the year is now 39 per cent, up from just nine per cent only three months ago.

A survey by Lonres shows that 61 per cent of agents expect the level of transactions in 2014 to be lower than in 2013.

The net balance of agents have reported that, over the April-June period, stock levels, withdrawals, fall-throughs and the length of time to find a buyer all rose, while demand levels have fallen.

However, demand is still outstripping supply in what Lonres calls the lower price brackets – those below £2m. Whereas price falls were recorded for properties sold at the very top end of the market, the average sale price per square foot for properties sold under £2m rose by 4.1 per cent.

In the super-prime sector, there has been a fall in international demand, particularly from Russians – 41 per cent of agents reported Russian demand was down in the April-June period. Across the whole super-prime central London market of £10m-plus properties, there was a 5.7 per cent fall in the second quarter.