Data reveals that the average transaction price for prime London properties fell by 3.3% year-on-year, marking the largest decline since May 2021. Meanwhile, transaction volume decreased by 29.5% compared to the same period last year. Despite the overall market downturn, property values remain relatively stable compared to early 2014 levels.

Nick Gregory, Director of Research at LonRes, points out that many potential buyers and sellers seem to be adopting a wait-and-see approach, anticipating limited significant price increases or decreases.

Seller motivation has increased, but the pace of property withdrawals has slowed, accompanied by larger price reductions. This may reflect sellers' perception that the current market presents an opportunity for them to sell properties at satisfactory prices.

Additionally, economists predict a prolonged increase in interest rates, coupled with widespread uncertainty ahead of the general election, causing some to anticipate a weaker market outlook for the coming year. This factor also contributes to the reduced market activity.

However, the market for high-end properties valued at £5 million and above tells a different story. There has been an annual average increase of 20.4% in new instructions and a 3.6% annual average growth in transaction volume. This reversal of the previous trend of declining sales in this segment suggests that investors in the high-end property sector still hold significant interest and confidence in investment opportunities.