Although final data is not yet available, early indications suggest that sales across Greater London fell in Q3 (July-September). Despite low interest rates, first time buyers still struggled to find a large enough deposit, which averages just under £88,000. A shortage of properties, which remained at near record lows according to the RICS, also remained a challenge for buyers.
In contrast, activity in the higher priced end of the market increased. Exchanges rose by over one fifth compared to Q2, the number of properties on the market rose slightly over the quarter and was 25% higher than at the end of Q3 last year.
In terms of lettings, a good choice of available properties to rent at the higher priced end of the market enabled budget squeezed tenants to be more selective in Q3. They were also more prepared to compromise on location in order to obtain a better deal on rent, which typically involved looking further away from the more expensive central locations.