40 months growth ends in prime outer London

  • Prices fell -0.2% in October, the first fall registered since May 2011
  • Annual growth slowed to 10.1%, which exceeded a figure of 8.4% in October 2013
  • Fulham recorded the largest decrease, an area with a high number of properties that could be liable for mansion tax
  • Prices fell -0.5% across south-west London but there was growth in east London
  • Rental values fell -0.1% but demand rose strongly in the third-quarter

Anne Soutry, head of Knight Frank’s Fulham office said:

“What’s happening in Fulham is an adjustment that typically follows a period of rapid growth. It’s the cream coming off the cake.”

“This time, there is the added dampener of a possible mansion tax and the uncertainty that brings.”

“There is no reason why activity could not pick up in the new year but overall we are in a subdued market that could last until the General Election or next autumn.”

“We are encouraging buyers to make offers because in some cases vendors are more flexible than they have been all year.”

Tom Bill, head of London residential research, Knight Frank said:

“Meanwhile, there was growth in east London, with prices increasing by 0.4% in Wapping and 0.1% in Canary Wharf in October, the only two Knight Frank offices in prime outer London to record a rise.”

“Both areas benefit from their relative proximity to London’s two financial centres of the City and Canary Wharf, the fact they have fewer £2 million-plus properties and the emergence of high-quality new-build schemes in east London that lifts prices in the re-sales market.”