A cautious start, but we're looking forward to a positive year

As we reported in December, 2022 was a mixed year across the property market in general, and the Prime London market did not escape the turmoil of the back end of the year.  Despite this, and a cautious start to 2023, we believe there is every hope for a positive year ahead.

A fickle 2022 with many twists & turns

In the first half of 2022, LonRes reported that sales across all price bands were higher than their 2017- 2019 average during the year, achieving prices only slightly lower than the peak of 2015.

The prime London market (along with most of the country), appeared to ignore the threat of inflation and other market factors to continue the post-pandemic boom with high levels of activity and competition from buyers leading to inflated prices.

The top-end of the market boomed, while demand for houses fell slightly relative to flats, perceived to be a slightly safer long-term investment in the wake of the pandemic.

It seemed that the property market, which had been struggling towards 2020 was back on its feet again...

However, with the political chaos, inflation and increase in interest rates in the final quarter of 2022, buyers got the jitters, and we noticed a marked decrease in sales and an increase in deals falling through, with buyers losing their nerve or simply realising that the political storm was likely to cause prices to come down and they could find better deals if they waited. 

Despite some caution and price readjustment, there is still a market

The first month of 2023 has been very cautious. While mortgage rates affect the PCL market less than the rest, interest rates are still a factor and the market is still uncertain. 

However, cash is still king. Dollar buyers can still get some great deals despite a rally from the pound. And for those vendors who can wait it out or who are prepared to be realistic to sell, there are still buyers out there.

While interest rates uncertainty will continue to cause a trickle effect and general market sentiment will lead to canny buyers getting some great deals. 

Despite some caution and price readjustment, there is still a market, and there is every reason to hope for a good year. 

Please feel free to contact us with any questions you might have on the current prime sales or rentals market.

For sales and acquisitions, contact Simon or Tom on info@roseandpartners.co.uk.