Average prices in the prime central London property market fell by 4.4% in the year to August 2019, the most modest fall recorded so far in 2019, the latest index report shows.
The annual decreases in the volume of sales in also moderated as buyers responded to price adjustments and the Brexit deadline extension, according to the report from real estate firm Knight Frank.
The index report figures show that the number of new prospective buyers registering with Knight Frank increased by 29% over the 12 month period, all signs that the market is turning.
Overall price falls in prime central London have moderated, down just 0.5% on a quarterly basis and 0.1% month on month.
Meanwhile, in the prime outer London property market prices fell 3.8% year on year, were down 0.6% quarter on quarter and down 0.3% month on month.
Annual price declines have been most modest above £10 million in prime central London and £5 million in prime outer London.
‘Demand in higher value markets has been supported by the fact price growth was weaker in the run-up to the previous market peak in August 2015, as well as the more global nature of demand,’ said Tom Bill, head of London residential research at Knight Frank.
He pointed out that the effective discount on prime central London property for buyers denominated in a range of overseas currencies was more than 25% in August, compared to the period before the European Union referendum, adding that the discount has widened in recent weeks as political uncertainty rises in the UK.
The index report also says that the number of construction starts in London dropped to its lowest level in seven years in the second quarter of 2019, underlining how the supply of housing is likely to remain a key issue in the capital.