Sales in the prime central London market increased by 4% in the second quarter of 2019 compared with the first three months of the year and are set to keep rising in the next 18 months, according to the latest analysis.
The number of properties being marketed also increased, up 3%, and despite prices falling again, the price decline in the second quarter was slower than in recent months.
Overall, the sales market has shown positive signs of resuscitation after five years of stunted growth and it was the first quarterly rise in supply for a year. While the total number is still 15% lower than that of 12 months ago, the report says that it indicates that sellers no longer feel willing to wait for the current period of political and economic uncertainty to subside.
Although prices have fallen for a fourth quarter in a row, the decline of 0.2% is the smallest quarterly drop in a year. Price falls continue to be greatest for higher end properties. In the £10 million plus market prices have fallen by 4% year on year compared to the 0.9% fall in the sub £2 million sector.
In the lettings market there were fewer new rental agreements but more tenancy renewals in the second quarter of 2019. Sales fell by 16% year on year but the increased 3% quarter on quarter.
Rents have now risen in each of the past six quarters. Growth was highest at the lower price points at 3.2% year on year but in the lowest sector, £3,000 per week, average rents remain unchanged.