Sales of flats across London have collapsed 47% in the past 12 months as first-time buyers sit on the sidelines waiting for a better deal, research from estate agent James Pendleton has revealed.
The number of flats sold in July 2016 was 4,709 but by July of this year, that number had dropped to 2,494.
Transactions on other types of property also fell, including the number of detached properties sold fell 5% in 12 months to 143, and sales of terraced houses falling by 8%.
Whilst the number of sales declines, the sales prices of flats increased by 2% and terraces by 3%.
Lucy Pendleton, co- founder and director of James Pendleton, said: “This a classic sign that first-time buyer demand is sensitive. There is a temptation to wait on the sidelines while prices become more realistic.
“When that happens it can only be a good thing, because housing markets are most stable when transactions are healthy across the board.
“Solid numbers of people are showing some reluctance at current prices and signalling to all the other market participants they can’t transact unless they come back down to Earth.”
This comes after it was revealed that first-time buyers in the capital borrowed 8% more in Q2 2017 compared to 2016.