- Prime London property prices rose by 1.9% from November 2021 to November 2022
- Spring and Autumn remain popular times for new instructions
- There is less competition between sellers when there are fewer properties on the market
- Increase in supply doesn’t always lower property price
UK house prices have seen significant growth in the last few years, and prime London properties are no exception. Despite political and financial turmoil in the 4th quarter of 2022, LonRes reports that prices are still rising, up 1.9% over the year to November.
Analysis of local markets in 2022 showed price rises in prime fringe London (5.2%), prime inner London (3.4%) and prime central London (2.5%)(1).
When considering putting your house up for sale, you want the best return, so you are best placed for your next investment. Planning your instruction around the market can help.
In this article, we take a look at property market facts and figures from the past year, helping you to discover the best time to sell your property to see the greatest return based on market history.
Selling in Spring
Data from Rightmove reveals that March, April, and May are strong months to sell. The research found that March had the highest number of buyer enquiries per property for sale on average over the last five years. During these months, a large number of new listings came on the market, making Spring a competitive time for buyers(2).
When there’s increased supply but demand is low, house prices can drop, and sellers may reduce their sale price to attract buyers.
Selling in Summer
Traditionally, Summer months are quieter, with Summer holidays slowing the market. However, in August 2022, instructions rose by 4.7% compared to the same period in 2021. Despite more listings, demand still outstripped supply, and prices continued to rise across prime London, ending the month of July 7.7% higher than 2021, representing the highest growth rate since January 2015(3).
Summer might be quieter, but the figures show it’s not a month to rule out.
Selling in Autumn
September tends to be busy for the Prime London market: sellers are back from their summer holidays and they want to be in their new homes by Christmas. This leads to a rush for searches that carries on through the autumn season(4).
LonRes research supports that September, October, and November, are busy months for the prime London housing market. Autumn 2022 research shows a 7% increase on 2018 levels for the number of houses listed for sale. The top end of the market (£5m+) saw the biggest increase – up 30% on 2018 levels. Prime Central saw new instructions 8.5% higher than 2018 levels and Prime Inner 1.7% higher(5).
During September 2022, prices in prime London rose at an annual rate of 4.2%, leaving prices 3.1% higher than their average before the pandemic(6).
Autumn is a busy time for the housing market. Despite the increase in supply, it didn’t negatively impact house prices in 2022.
Selling in Winter
Winter months tend to see new instructions slow. In January 2022, new instructions of homes for sale were 6% lower than in the same month in 2021. Combined with high transactional levels, this means that the number of properties available in January 2022 was 16% lower than in the same period the previous year(7).
With fewer properties on the market, there is less competition between sellers. When demand is high and supply low, it can be an ideal market for achieving a good return: despite the season, motivated buyers won’t slow down for winter.
In summary
There are predictable ebbs and flows in the property market and some unpredictable ones brought on by the economic and political climate. Experienced agents have seen these cycles before, and can help you identify if it’s a good time for your particular goals and property type. Good advice from a professional takes the guesswork away and reduces your risk.
When it comes to selling your property, you should consider your priorities. Do you need to move quickly, or are you happy to hold out for the right price? Do you want to be settled somewhere before Christmas, or are you just looking for the right buyer? Take time to think about your goal, and talk to your Central London estate agent about it. Berkshire Hathaway HomeServices London has a deep understanding of prime central London, the UK property market, and the global market for real estate. This means we’re excellently placed to help you meet your sales priorities.
References
- https://www.lonres.com/local/newsletter/Market-Briefing-December-2022.pdf
- https://hub.rightmove.co.uk/march-revealed-as-the-strongest-month-to-sell-as-spring-surge-gathers-momentum/
- https://www.lonres.com/local/newsletter/Market-Briefing-August-2022.pdf
- https://www.lonres.com/local/newsletter/Market-Briefing-September-2022.pdf
- https://www.lonres.com/local/newsletter/Market-Briefing-September-2022.pdf
- https://www.lonres.com/local/newsletter/Market-Briefing-September-2022.pdf
- https://www.lonres.com/local/newsletter/Market-Briefing-February-2022.pdf
