Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Prime London Property Market Sees Uptick After Quiet Year

Prime London property transactions have increased this year compared to the subdued market conditions seen 12 months ago, according to Knight Frank. The agency reports that the number of transactions across the capital was 14% higher in the three months to July, with a 3% rise in prime central London.

Knight Frank notes that last year did not set a particularly high bar for sales in high-end areas. The agency also highlights that the market backdrop this year has remained quieter overall.

The report states that new rates of high-value council tax announced in November were not as severe as some had feared, which enabled buyers to make plans after the Christmas break. By March, the number of offers made in both prime central and prime outer London was 8% higher than the previous year, leading to increased activity during the summer.

There is ongoing speculation ahead of October’s Budget, but Knight Frank observes that this has been more muted, particularly after the new Prime Minister ruled out a land value tax.

Stuart Bailey, Head of Prime Central London Sales at Knight Frank, comments that exceptional properties are in short supply. As a result, buyers who were previously unwilling to consider refurbishment projects are now doing so to secure their desired properties. Many buyers at the top end of the market may spend one or two years searching for their ideal home, and the opportunity to create it remains an option if it does not currently exist.

These trends are relevant for letting agents and inventory clerks monitoring demand and supply in the prime London market, as well as the types of properties and projects buyers are now considering.