The number of domestic buyers has increased
JLL has just revealed key stats about property transactions in the UK, take a look:
- In the final quarter of 2016 the number of transactions increased by 36% compared with Q3
- The number of domestic buyers increased while the weak pound spurred a number of international purchasers back into the market.
- On average prices fell again in Q4 but, very importantly, the price declines have diminished during the course of 2016.
- The average price fall of just 0.1% in Q4 was a slight improvement on the 0.2% drop in Q3 and a notable change from the 1.1% and 0.9% falls seen in Q1 and Q2 respectively.
- Q4 was the first quarter in 2016 that prices in the sub £2m market did not fall. Prices also remained broadly flat in the £2-5m price bracket during Q4.
- JLL expect transaction levels to be notably higher in 2017 compared with 2016 and predict that prices will remain broadly flat during the year ahead.
Richard Barber, Director (sales) of Residential Agency at JLL, said: “Q4 saw a marked upturn in transactional volume throughout Prime Central London with some notable high value sales. Whilst some values have undoubtedly slipped throughout 2016, it was interesting to note that exceptional properties were still commanding high rates per square foot and on a similar level with 2014 peak values.
“Much of this activity can be accounted for by the weakness of sterling and stronger post-referendum sentiment. Whilst this is encouraging going forward, the market will still be mindful of potential external influences such as the road towards a hard Brexit during the course of 2017. Nevertheless, both Prime Central London demand and sentiment now appear to be stronger.