Cluttons has released its Summer 2018 residential Market Outlook Report.
Residential capital values have continued to decline across prime Central London, fuelled by a continued weakness in transaction volumes, persistent affordability issues, nervousness to commit to a purchase in a market that is still softening. Brexit linked anxiety is clearly adding to the market’s woes as well.
That said, a closer look at deals by price band reveals a very different picture. Homes priced under £600,000, as well as those priced in excess of £10 million have registered a rise in deal activity during the first three months of 2018.
In contrast to the residential sales market, rental values across prime Central London have held steady for two consecutive quarters, suggesting that a period of stability may be starting to bed in.
Best in class properties continue to command the highest rents. Furthermore, with geographic loyalty less of an issue in prime Central London locations, homes that are well presented are commanding the highest levels of interest and are also letting rapidly, often at, or just below asking rates.
Further detail is presented in our report, alongside an in depth look at London’s affordability challenges and our five year forecasts for the sales and lettings markets.