LonRes: ‘Summer slowdown started earlier this year’

The General Election sparked an early summer slowdown for London’s prime housing market, research suggests.

Analysis of the prime London housing market by LonRes shows how market activity slowed in the run up to the General Election.

Sales values in June fell by 4.5% compared with a year earlier while there were 17% fewer transactions over the month compared to the same month last year.

Meanwhile, activity over the past six months has been down on the same period in 2023, but both metrics – transactions and prices – remain broadly in line with 2017-2019 (pre-pandemic) levels, LonRes said.

New instructions fell in June by 8.4% annually but remain 4.8% higher than the pre-pandemic June average.

Meanwhile. the stock of available homes for sale continues to rise, with 12.7% more properties on the market across prime London at the end of June than a year earlier.

Weaker demand continues to constrain the £5m+ market, LonRes said, with sales volumes down 21.5% annually but still above pre-pandemic levels.

New instructions also continued to rise in this top end market and at the end of June there were 25.8% more £5m+ properties for sale than a year earlier.

Commenting on the findings, Nick Gregori, head of research at LonRes said: “June was a quiet month for the prime London sales market, with activity down on all our main metrics.  

“While evidence shows us that a General Election has little overall impact on the prime London housing market, one isolated month prior to polling day may display a little more volatility.  The market tends to slow down for the summer in July and August and it is possible that this started early this year.  We know many buyers and sellers are playing a waiting game – mainly hoping for better economic news and political stability – and the General Election campaign is likely to have added to this sense of caution. 

“Now the election is done, the stability point is dealt with.  And if the financial markets’ response is anything to go by, the certainty offered by a new government with a large majority could increase confidence, overriding any worries about taxes and regulation.  This raises hope that the impact of an early summer slowdown can be caught up later, but sentiment across the wider international stage remains fragile.”