Needs-based buyers bolstering activity in London resi markets

The mixed picture for UK inflation and interest rates since the beginning of the year means needs-based buyers are driving a larger share of activity in prime London residential markets, reveals data from Knight Frank.

While this has benefitted lower-value markets, where a higher proportion of domestic buyers move for education or employment, there has been more hesitancy in discretionary, higher-value markets.

The number of new prospective buyers between £750,000 and £2M was 21% above the five-year in the first three months of year, Knight Frank data shows.

Above £5 million, the increase was just 3%.

Meanwhile, the total number of offers made between £750,000 and £2m was 6% higher, while above £5m there was a 6% decline.

Overall, average prices in PCL fell 2.4% in the year to March, the same figure as recorded in February. 

However, prices were down by 1.5% in POL after rising by 0.1% on the previous month.

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