Annual prices for prime central London properties stood at £1.8m, falling 2.4% over the month and 5.4% over the quarter, according to the latest London Central Portfolio and Acadata residential index (LCP).
All transactions fell 15.6% over the year to 3,558, down 43 per cent on 2013.
New build average prices now stand at £2.9m, with quarterly new build transactions falling by 76 per cent to just 51, whilst annual transactions dipped by 16.1%.
Regional overview
In Greater London prices stagnated with monthly growth of 0.6% and quarterly growth of just 0.1%. Annual prices rose by 0.6%, the weakest performance since the Global Financial Crisis (GFC), standing at £621,019.
All transactions fell by 5.2% across the year.
New build prices rose by 17.1% over the year and stood at £675,557, with new build transactions, however, plummeting by 19.0%.
In contrast to London, the new build sector in England and Wales is showing a more robust performance, with both annual transactions and prices moderately up.
Average prices in England and Wales saw a fourth consecutive monthly fall to £259,442.
Monthly prices fell by 0.2% and quarterly prices fell 2.9%. All transactions fell by 1.9% over the year and stood at 798,296.
New build transactions stood at 94,139, an annual increase of 3.9%.
New build prices stand at £301,294, recording an annual increase of 3.8%, resulting in a 15 per cent premium over existing stock.
Investors delay purchases until April
Naomi Heaton, CEO of LCP, said that with just under five weeks to go until Britain is due to leave the European Union, many investors are delaying any purchase until April, when there may at least be ‘a clear direction of travel’.
She added: “There is a new momentum in the market as other investors see a moment of opportunity, before demand and sterling have a chance to strengthen.
“As Brexit uncertainty continues to roll on and the chance of a ‘No Deal’ exit is still very much on the table, buyers are viewing any potential purchase as a risk. As property is, by and large, the most expensive purchase of their lives, they are preferring to wait and see, not only what happens on March 29th but also during the post-Brexit transition period.”
