Across England and Wales, annual transactions increased to 880,959, a 27.8% rise over the preceding year, and above the long term average of 869,286 p.a.
This figure is almost double the number seen after the credit crunch, when transactions stood at just 467,949.
Average prices in England and Wales, excluding Greater London, have risen 4.4% over the year to reach £229,147. Average prices including Greater London are £269,890.
In Greater London, whilst a slowdown is anticipated, Q3 2014 still shows a positive picture on all measures.
Average prices reached £548,040, 2.7% higher than last quarter and 10.7% higher than this time last year.
Annual transactions in Greater London held steady with 117,362 sales compared with 116,551 last quarter.
The level of growth, however, is the lowest seen so far this year after 4.9% and 7.6% increases in Q1 and Q2 respectively.
Naomi Heaton, CEO of London Central Portfolio, commented:
“A slowdown is inevitable given the high growth rates seen by Greater London over the last year coupled with the prospect of mortgage caps and interest rate rises. Not only this but Q4 always demonstrates noticeable seasonality, with price falls experienced every Q4 in Greater London since 2001. Any alarmist reports about prices falls in the next three months should be taken in this context. ”
Prime Central London has seen continued positive growth this quarter.
Average prices increased 12.8% annually to reach a new high of £1,773,337 which can, in part, be attributed to a number of high value sales in the PCL ‘houses’ sector, notoriously volatile due to its tiny size and huge diversity. This quarter, 235 houses sold at an average price of £4.45 million, an 18% annual increase.
A number of high value sales contributed to PCL’s average price rise, including the second most expensive sale on Land Registry records: £50m for a leasehold flat in Princes Gate, City of Westminster. All of the top 15 most expensive sales in England and Wales took place in PCL this quarter, with prices ranging from £13m - £50m.
However, demonstrating the first sign of a slowdown, PCL transactions fell 9.5% quarter on quarter. Although annual transactions, at 6,368, are now at their highest level since 2007, before the credit crunch.
Heaton said:
“It is to be expected that PCL growth will taper off for the next 6 months, given the high growth levels already seen and the traditional market jitters before any general election. However, there is no evidence that the long term fundamentals for growth will not remain in place. Any price discounts now, will present a buying opportunity before the usual post-election bounce”.
