Residential sales and prices pick up across London

Residential sales volumes and prices have picked up across the country in Q3 2017 according to recent data by Land Registry.

Analysed by London Central Portfolio in conjunction with Acadata, London has shown an ‘improving picture’.

According to the analysis, 229,373 quarterly sales took place in England and Wales in Q3, representing an 8.3 per cent increase over the previous quarter. Average prices reached just over £295k, following a 0.9 per cent quarterly increase and a 3.9 per cent increase over the previous year.

Naomi Heaton, CEO of London Central Portfolio, commented: “The latest data from Land Registry indicates a more positive outlook, both for London and across the country, following a period of slow growth as tax changes…

“This improving picture in both sales volumes and prices is good news for homeowners, particularly when other indices, such as Halifax, are reporting the weakest consumer sentiment since 2012.”

Data for London also pointed to stabilisation after a period of notably rapid change. Whilst a 2.8 per cent quarterly decline in average prices was recorded, prices are 8.3 per cent higher than a year ago, standing at £619,203.

Transactions, which had seen consistent year-on-year double digit falls since ARSD was introduced in Q2 2016 until Q1 2017, also showed a marked improvement.

Heaton continued: “Turning to London, it is encouraging to see the market pick up following unusual volatility over the last two years in the face of penal tax changes.

“The increase in semi-detached and detached house sales indicates that the suburbs of London may be making a recovery, having been held back since the introduction of graduated Stamp Duty and the tightening of mortgage lending criteria.

“Whilst the latest outlook for London and England and Wales is encouraging, rumours of further tax changes in next week’s Budget could make or break any conspicuous recovery. The Chancellor should take heed of the delicate position of the market where more interference may tip the scales back in the other direction.”

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