Prime London Market Update - October 2021

20 October 2021

In this last quarter, it was the upper end of the sales market that enjoyed the greatest activity. However, looking at the whole year to date, LonRes data shows that transaction levels across prime London have been high with the number of properties sold to the end of September just 3% lower than the whole of 2019. What's more, our latest under offer data, a lead indicator, suggests we could be in for a busy end of the year too.

Meanwhile, in the lettings market, the turnaround of fortunes has been dramatic. The high stock levels of a year ago are no longer, in fact LonRes September figures show that there were 68% fewer properties available than in 2020 and 38% less than in 2019. With competition for rentals soaring, discounts have fallen too.

Inside the October issue


Sales market update

  • The number of properties sold in the first nine months of 2021 was 11% higher than total sales recorded in the whole of 2020.
  • In Q3, sales at £5 million+ were 39% higher than the 2015 to 2019 average.
  • Houses continue to outperform flats in September, with annual increases of 1.0% recorded for flats compared with 4.6% for houses.
  • ​Sales charts: 'Transaction volumes - 2021 compared with 2015 to 2019 average' and 'Annual change in achieved prices'. 

Lettings market update

  • In September, rental properties available across prime London were down 68% on September 2020 and down 38% on September 2019.
  • Year to date, there have been 15% fewer new listings compared with 2020, and 27% fewer than the five-year (2015-2019) Jan to Sept average.
  • Discounts have fallen, with September seeing an average of 2.4% off initial asking rents compared with 10% in March.
  • Lettings charts - 'Achieved rents - change since Feb 2020 peak and annual change' and 'Properties on market to let - Sept 2021 compared with 2020 and 2019'.

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Marcus Dixon
Head of Research at LonRes
T: 020 7924 6622