Whilst property prices have fallen for the second quarter in a row, annual growth remains positive at 0.5% according to new data from Knight Frank.
Prime markets in London have seen a fall of 1.8%. The Knight Frank report explains these developments of moderate price growth with the recent stamp duty increases being factored into the purchase price.
The report furthermore reveals that prime property buyers are now looking outside of London to find the perfect investment. The headline figures suggest that the market has been relatively subdued and activity has remained resilient after the UK’s decision to leave the EU, with some indicators still suggesting string activity.
One of the positives mentioned in the report is a 13% increase in new instructions between July and August compared to the same period in 2015. Knight Frank explains that this development is due to the fact that more stock is coming to the market, meaning that vendors who had put off selling after the Brexit vote are now returning to the market.
“The strongest markets continue to be affluent towns and cities which have outperformed their more rural counterparts, although the differential has narrowed in the last six to 12 months,” said partner Oliver Knight.
Average values for properties in city locations have also risen by nearly 2% annually and are around 5% above the previous market peak. In comparison, annual price growth for rural properties was 0.5% and remains 12% below peak levels.
“Prime urban markets benefit from good schools and amenities as well as excellent transport links to London, which make them among the first port of call for buyers from the capital,” he explained.
“Our figures show a 43% increase in the number of sales to Londoners in the Home Counties in the first nine months of 2016 compared with the same period the previous year,” he said.
“We will continue to keep a close watch on key market indicators in the coming months to assess any potential longer term impacts of the referendum result,” he added.
