Knight Frank has reported a surge in gross sales exercise within the week previous the Funds, with its UK residential gross sales groups exchanging on £161m of property exterior of London and £132m within the capital. Brokers throughout the agency’s nationwide community famous heightened urgency as purchasers sought to finish transactions forward of potential coverage modifications.
Following the Funds announcement final week, the lifting of uncertainty has triggered a marked shift in sentiment. The agency has noticed renewed confidence amongst some consumers who had beforehand adopted a wait-and-see strategy, leading to an uptick within the variety of provides acquired during the last 24 hours. Readability supplied by the Chancellor’s assertion is beginning to launch the suppressed demand that had collected throughout the interval of hypothesis, with consumers now in a position to make knowledgeable selections based mostly on confirmed insurance policies.
Mixed with this, the agency says the UK property market now represents good worth in comparison with ten years in the past, particularly in prime central London the place costs are down 20% since 2015.
Tim Hyatt, Head of Residential, Knight Frank, mentioned: “Our groups throughout London and the Nation exchanged on nearly £300m of residential property this week. We noticed the variety of transactions greater than double when in comparison with the identical week in 2024, broadly pushed by pre-Funds fears over probably onerous tax modifications, particularly rumours round capital beneficial properties tax on major residences which might have been massively damaging for the prime market.
“In the long run, the bark was worse than the chunk. Weeks of hypothesis brought on extra disruption than the measures launched are more likely to.
“With readability on future coverage modifications, and downward strain on pricing in recent times, many house consumers now see London and the broader prime nation market as one which is providing actual worth. For these which might be able to take a mid to long run view, I imagine this level within the property cycle, is an opportune time to behave.”
A number of the offers that exchanged this week embody a big lateral residence in a backyard sq. in Knightsbridge that had a information value of £25m.
Housing market stays resilient regardless of pre-Funds uncertainty
