More homes were sold in the capital city center in 2023 than in the three pre-COVID-19 years, with buyers spending £1.1bn in the fourth quarter (Q4) alone. was just -5% below the five-year average, JLL’s latest Prime Central London (PCL) report has revealed.
Total spending on PCL homes, pictured, in 2023 reached £4.6bn, 10% above the five-year average, and sales in 2023 were 4% higher than the 10-year average.
signs of encouragement
JLL’s Prime Central London Report for Q4 2023 also reveals positive signs for 2024, despite the challenges faced by the UK housing market in the previous year.
Although the PCL market saw slower activity and lower prices in 2023 compared to the previous year, long-term trends remain strong.
Sales were down -11% compared to the 2022 high, but up +4% on the 10-year average, with more homes sold in 2023 than in any year between 2016 and 2019. .
Despite the drop in activity in Q4 2023, buyers spent £1.1bn on PCL, just -5% below the five-year average, while total home spending on PCL in 2023 was £46. billion pounds, 10 more than the five-year average. %.
The PCL rental market also showed signs of recovery as the imbalance between supply and demand eased.
The number of rental homes available on PCL increased by 64% annually in Q4 2023. Achieved rents decreased by -0.9% in the third quarter of 2023, but overall compared to the fourth quarter of 2022 he recorded an increase of 5.1%.
Best performing market
Looking ahead, JLL predicts that central London will be the best-performing market over the next five years, with average annual price growth of 3.7%.
Marcus Dixon, JLL
In the rental market, JLL forecasts that average annual rental prices will rise by 5.2% over the next five years, supported by a continued shortage of rental housing in prime central London locations.
Marcus Dixon, Director of UK Housing Research at JLL, said: “2023 was a difficult year for the UK housing market, but key central London markets weathered the storm.
“The JLL Prime Central London Index suggests that profits for those who need to sell now are 4.9% lower than a year ago. However, with few sellers under pressure to trade, We don’t see any significant price declines.”