There were 24% more exchanges in Prime Central London (PCL) in September compared to the same month last year, research by Knight Frank has revealed.
The annual price decline in PCL narrowed to 3.4% in October, down from 3.9% in September.
Tom Bill, head of London residential research at Knight Frank, said: “Prices have adjusted in PCL in recent years in response to higher rates of stamp duty and political uncertainty.
“As a result, average pound per square foot figures for existing homes in a range of markets are below their five-year average.
“In the so-called “golden postcodes” of Mayfair, Knightsbridge and Belgravia, prices are more than £200psf below the average over the last five years.
“However, it should be noted that prices in some new build developments have risen over that time.
“In addition to the weakness of Sterling, the release of pent-up demand among needs-based buyers and ultra-low mortgage rates, this re-pricing has driven demand.
“Downwards pressure on supply has resulted in the moderation of price declines. As vendors hesitate due to political uncertainty, more owners have decided to let their property.
“The same demand drivers for owner occupiers and landlords in the existing homes market in prime central London produced an increase in activity for new home sales in Q3, Molior data shows.
“There were 1,438 sales in zone one in the period, which was the third highest such figure in 10 years.”
The number of homes valued for rent by Knight Frank declined by 4% in the year to September, suggesting the number of ‘accidental landlords’ is declining.
The ratio of new prospective tenants to lettings listings below £1,000 per week was 7.9 in October, compared to a market average of 3.8.
In addition, average rental values increased by 2% in PCL between £500 and £750pw in the year to October.