Prime London property sales fell to their lowest August level since 2008 as buyers and sellers continued to hold back from the market, according to LonRes.
Transactions were 19% lower than a year earlier and 25.6% below the average recorded during August between 2017 and 2019.
New instructions were also particularly weak, falling 22.1% year-on-year to their lowest August level since 2011.
The slowdown continued to put pressure on prices, with average achieved values across prime London falling 7% annually in August and standing 6.7% below their 2017 to 2019 average.
SELLERS HOLD BACK
Despite weaker activity, the number of properties going under offer fell by a smaller 15.3% year-on-year and remained 9.4% above its pre-pandemic August average.
LonRes says this suggests underlying buyer demand has not disappeared completely, but agreed offers are taking longer to progress into completed sales.
Half of properties currently available across prime London have undergone a price reduction, while homes sold during August achieved an average discount of 10.4%.
Nick Gregori (main picture, inset), Head of Research at LonRes, says: “There are quiet Augusts and then there are quiet Augusts.
“With the market in general lacking momentum so far this year, the low level of activity this summer is no great surprise, but 2026 saw the lowest number of new instructions across prime London in an August since 2011, and the lowest level of transactions since 2008.”
Activity was also subdued at the top of the market, with £5m-plus transactions down 18.8% annually and new instructions falling 10.4%.
RENTS KEEP RISING
Prime London’s lettings market also experienced weaker activity, although rents continued to increase.
Average rental values rose 3.8% year-on-year in August and now stand 41.4% above their 2017 to 2019 average.
Lets agreed fell 27.5% annually, while new instructions were down 3.5%. Available rental stock, however, was 6.1% higher than a year earlier.
Gregori adds: “The ‘wait-and-see’ approach that has been a feature of the prime sales market for a while has had a direct impact on the prime lettings market.
“For reluctant buyers, the rental market allows a chance to ‘try before you buy’. For those deciding whether or not to sell, the rental market offers a chance to get some income in while waiting for more favourable sales market conditions.”
