Average values across the prime London residential markets held their own in the second quarter of 2019 for the first time since the third quarter of 2015. While have prices continued to show falls on an annual basis, these have reduced to just -1.8%, less than half the level seen this time last year.
Quarterly price growth of +1.2% in the predominately domestic markets of prime south west London properties from Fulham through to Wimbledon, means this part of the market, unlike others, is showing modest annual price growth.
“This primarily reflects a shortage of stock, which has been particularly pronounced in this part of London,” says Prapaporn Boonkajornkul, head of International Residential Sales at Savills. “Some Savills south-west London agents tell us that a lack of stock is now the biggest constraint on their market, which has led to a narrowing of expectations between buyers and sellers.
“Across the prime London markets as a whole, we’ve seen the surprise return of competitive bidding. This results from relatively low stock levels and buyer commitment to securing the very best properties in a fragile marketplace.”