Falling asking prices in the central London prime residential market have failed to reverse a downward trend in transaction volumes, according to data from Knight Frank.
Prices fell by 0.2% in August and by 5.4% annually. Meanwhile, the number of transactions between May and August was 2.6% lower than between January and April this year.
However, Knight Frank’s data pointed to longer-term trends which paint a more positive picture of the prime market.
The number of residential exchanges was 5% higher in the first seven months of 2017 compared to the same period in 2016.
While there has been a slight decline in sales volumes since April, volumes were 21% higher in June and July than last year.
Knight Frank also said there are suggestions of a recovery in the number of prospective buyers registered between January and August this year, which is up 8% compared to 2016.
“The impact of political events and stamp duty changes means a comparison of market performance in 2017 with previous years is not straightforward,” the agency said.
“However, an improvement on last year is clearly discernible although any recovery remains relatively shallow for now and in line with our forecast for a broadly flat price movement this year.”
Meanwhile, average rental values remained unchanged for the second consecutive month. Annually, rental values are down 3.4%.
The number of tenancies agreed in the first seven months of the year was 21% higher than 2016 and 59% above the level in the same period in 2015.
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