_St John's Wood is the only market in PCL where transactions are rising

St John’s Wood is the only residential market in prime central London where sales volumes in the existing homes market are rising, new data shows.

A growing number of vendors in the north London neighbourhood have reduced their asking price, which has led to higher levels of activity, according to James Simpson, Knight Frank’s office head in St John’s Wood.

There were 2.3% more transactions in the year to October in St John’s Wood than the previous 12-month period, LonRes data covering the existing homes market shows. It compared to an average decline of 16% across the whole of prime central London, an area that comprises 16 different neighbourhoods according to Knight Frank.

“There is often a lag between what happens in more central areas and St John’s Wood,” said James. “Many vendors in St John’s Wood were initially reluctant to lower their asking price but as the trend became more widespread, sellers have seen the market evidence and become more flexible.”

^{Above: James Simpson is head of Knight Frank's St John's Wood office.} 

Trading activity across the wider prime central London market declined following a stamp duty hike in December 2014 and a further increase in April 2016. Although volumes began to increase as asking prices adjusted to higher transaction costs, figures have dipped in the second half of this year as political uncertainty increases ahead of the UK’s departure from the European Union.

The lag between more central areas and St John’s Wood explains why sales volumes are, for now, relatively more immune to the uncertainty generated by Brexit, said James.

Despite the wider slowdown in activity, there is evidence that pent-up demand is forming in the prime London market, which may be released once political uncertainty recedes. The total number of prospective buyers registered with Knight Frank London offices was 14% higher in October 2018 than the same month last year.

“St John’s Wood has a good share of entrepreneurial buyers who have been watching the market and waiting for the right time to act and when the price is right they go for it. The data shows that many of them have decided that now is a good time to buy,” said James.

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