Transactions in Prime Central London fell to the lowest level on record, according to a new report.
London Central Portfolio today released findings of analysis, conducted in conjunction with Acadata, which found that transactions in prime central areas of the capital were down 9.5 per cent in 2017, compared to 2016, representing the lowest number of annual sales on record and a 34 per cent drop from 2013.
There were just 4,183 property transactions in Prime Central London in 20-17.
The new build sector also suffered last year the report found, with transactions falling 13.4 per cent annually and 5 per cent on a quarterly basis.
However, prices were found to have stabilised somewhat toward the end of 2017 with growth of 2.4 per cent in Q4.
London Central Portfolio chief executive Naomi Heaton says: “Prime Central London has experienced unprecedented pressures over the last few years with the introduction of new taxes targeted at the residential sector and London in particular.
“On top of this, an unsettled political backdrop and the slow progress on Brexit negotiations has further dented sentiment, resulting in a picture of price volatility and falling transactions.
“Nevertheless, there were signs towards the end of 2017 that prices were stabilising with four consecutive months of marginal price growth, culminating in Q4 growth of 2.4 per cent. This contrasts with Greater London and England & Wales which continue to see price falls.”
In Greater London, prices were found to be falling, with properties at an average of below £600,000 for the first time since 2016. Transactions dropped by 7 per cent in Q4 2017 and 10 per cent over the year.
Outside of London, prices in England and Wales were also found to be falling, down 4.7 per cent in Q4 2017, the largest quarterly drop since February 2009.
Annual transactions were also on the decline, down 2.3 percent in 2017, compared to the previous year.
The new index is based on the actual prices at which properties in England and Wales transacted, using Land Registry data.