Coutts: "It’s still a buyer’s market but prices are falling at a slower pace"

Coutts reports that half of London property worth £1 million or more is being sold at a discount with buyers getting a little over 11% off on average. Prices continue to fall too, albeit at a slowing pace. They fell 0.3% in the three months to June compared to a 3% drop in the first quarter of the year. They are now 1.7% lower than a year ago and 14% below their peak in 2014. Falling prices have boosted recent activity in the market. Sales volumes for prime London property increased 16% in the three months to the end of June despite falling by 17% since the same time last year. The number of properties under offer also rose by 11% in the most recent quarter – a sign of even more sales to come. But the amount of London prime property changing hands is still a long way off what it used to be – as little as half what it was in 2013. While we’re seeing high discounts generally, it’s a slightly different story for ‘best in class’ properties where competition remains fierce. Sales are often going to sealed bids for such properties and some are even setting new records. Prices are falling more slowly and Coutts expects them to remain relatively flat for the rest of 2018.