London prime property sales hit lowest August since 2008

The prime London property market experienced its weakest August performance since 2008, according to data from LonRes. Sales transactions fell 19% compared to the previous year and were 25.6% lower than the pre-pandemic average recorded between 2017 and 2019.

Average achieved sold prices dropped 7% year-on-year, leaving values 6.7% below pre-pandemic levels. Sellers have increasingly accepted discounts to secure deals, with properties sold in August achieving an average discount of 10.4%. Additionally, half of all available stock underwent a price reduction during the month.

The slowdown extended to the luxury segment, where transactions for properties valued at £5 million or more fell 18.8% year-on-year. While new instructions for these high-end homes also decreased by 10.4%, they remained above pre-pandemic averages.

Market analysts suggest that while buyer demand persists, transactions are taking longer to complete. External factors, including persistent inflation and fluctuations in UK government bonds affecting mortgage costs, continue to impact market momentum.